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Lagarde: Conditions Remain Restrictive

ECB

Lagarde concludes the opening commentary with an overview of the trajectory of financing conditions and the latest Bank Lending Survey, noting that monetary conditions are restrictive and credit dynamics remain weak:

  • Market interest rates have been broadly stable since March and wider conditions remains restrictive.
  • Still-elevated borrowing rates and cut back in investments programmes led firms to reduce demand for loans as reported in the latest BLS.
  • Credit standards for loans remain tight with a moderate easing for mortgages.
  • Against this background credit dynamics remain weak.
  • Bank lending to firms grew only marginally more in February.

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