The rate of growth in euro zone bank loans to the private sector rose again in February, the European Central bank said today, signalling more support for growth across the 17-nation area.
Lending expanded at an annual rate of 2.6%, up from 2.4% in January, the ECB said. This continued an upward trend that had been interrupted in December.
The ECB also said that euro zone money supply - as measured by its M3 indicator - grew at an annual rate of 2% in February, compared with 1.5% in January. The ECB regards this figure as a key guide to pressures likely to affect inflation in the medium term.
Lending and money supply data are widely-followed indicators of consumer demand and overall economic activity.
Rising figures point to increased demand, which normally means inflation is picking up and could incite the ECB to raise interest rates. The ECB has kept its key interest rate at a historic low of 1% since May 2009 but financial markets expect it to rise to 1.25% in April.
Members of the central bank's governing council are concerned about inflation, which at 2.4% is now well above the ECB's target of just under 2%.
A breakdown of the ECB loan data showed that lending to non-financial corporations gained 0.6% year-on-year in February, slightly better than the January figure of 0.5%. That category had been falling at the end of 2010. Loans to households were 3% higher.
