The rate of growth in euro zone bank loans to the private sector fell slightly in March, the European Central Bank said today, signalling a possible dip in support for euro zone growth.
Lending increased by 2.5% from the level in the same month last year, but that was slightly slower than the rate of 2.6% in February, an ECB spokesman said.
The central bank also said that euro zone money supply as measured by its M3 indicator grew by 2.3% in March however, a rate that was higher than the increase of 2.1% the previous month.
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 could also begin to pick up and incite the ECB to hike interest rates.
The central bank raised its key interest rate to 1.25% in April, and economists believe it could reach 1.75-2% by the end of the year.
