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Weak euro zone economy would require further lowering interest rates

Last month, the volume of lending to enterprises and households in the euro zone rose slightly, while in Germany the growth of the retail price was lower than analysts’ expectations. All this gives specialists reasonable assurance that the European Central Bank will continue to lower interest rates, reports WSJ.

Since October this year, issuing credits to the private sector in the euro stood at $1.4 billion, which means almost zero growth And a worst level since 1991, when the registration of the economic indicator.

stagnation in private sector lending has reduced the annual growth of loans to 7.1%, while in October the figure was equal to 7.8 %. The growth of money supply in the euro zone also slowed, against analysts’ expectations.

Economists predict that these factors provide the leadership the ECB sufficient grounds for a further rate reduction at the next meeting to be held on 15 January.