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Eurozone Bank Loans Rise

Eurozone Bank Loans RiseEurozone Bank Loans Rise

Growth in bank loans to eurozone households rose to a post-crisis high in May while a key money supply indicator, which often predicts future economic activity, rose slightly, RTE reported. This is according to fresh data from the European Central Bank Wednesday. Lending to households, driven almost entirely by mortgage lending, grew by 2.6% in May, picking up from 2.4% a month earlier and hitting its highest pace since March 2009. While this pace of growth was less than half of the pre-crisis level, it still suggested that the ECB’s cheap cash was making its way to the real economy, even if slower than the bank had originally hoped. Corporate lending in the 19-country currency bloc grew by 2.4% in May, unchanged from the previous month. The annual growth rate of the M3 measure of money circulating in the eurozone, which has in the past often predicted economic activity, rose to 5% last month from 4.9% in April.

 

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