The volume of loans to business, which is the most important driver of long-term recovery of the euro area rose by 0.9% in July, with growth of 0.2% in June. Loans to households rose by 1.9% from 1.7% a month earlier.
Factor to improve lending by the end of 2014 is the program for the purchase of assets by the ECB. However, inflation remains low – at around 0.2%. The indicator decreased mainly due to lower oil prices and weaker economic growth in the world.
This week the ECB is expected to cut its forecast for inflation, some economists expect the financial institution to announce additional stimulus measures.
“We expect the ECB to economic growth next year are too high,” said Joerg Kraemer, economist at Commerzbank. His expectations are the ECB to loosen the monetary policy.
Preferred by ECB President Mario Draghi index for expected inflation – EUIL5YF5Y = R, it is at a level of 1.6 percent, below the bank’s 2%.