Growth in eurozone private sector slows slightly: ECB

Growth of loans to the private sector in the euro area slowed slightly in March, European Central Bank data showed on Wednesday.

AFP| Last Updated: Apr 27, 2016, 16:05 PM IST
Growth in eurozone private sector slows slightly: ECB

Growth of loans to the private sector in the euro area slowed slightly in March, European Central Bank data showed on Wednesday.

For the ECB, the statistics are a key indicator of the economic health of the single currency area, as borrowing is a main financing source for corporate investment which in turn should boost the eurozone`s currently weak economy.

In March, approved loans rose 1.0 percent from a year ago, slightly slower than growth of 1.2 percent in February, an ECB statement said.

When certain strictly financial transactions are stripped out, the growth in loans stagnated, with credit accorded to households and companies up 0.9 percent in March, unchanged from February.

The ECB has launched a raft of policy measures to get credit flowing, most significantly a massive programme to buy public sector bonds to pump liquidity into the system.

The ECB recently beefed up that programme and also launched a new scheme of ultra-cheap loans to banks on condition they lend them on to households and businesses.

Growth in the overall money supply, known as M3, stood at 5.0 percent in March, fractionally faster than the 4.9 percent recorded in February, the ECB also said Wednesday.

The ECB regards M3 money supply as a barometer for future inflation.