29 Apr 2014
EMU releases in the limelight – Danske Bank
FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, expects the credit in the euro area to start to pick up later in this year.
Key Quotes
“Euro money and credit data are expected to continue to look soft. M3 growth is expected to have risen 1.4% in March close to the low level of 1.3% in February (much below ECB's old reference rate of 4.5%, which it has stopped referring to in the past years)”.
“Credit should pick up gradually during this year as lending standards are expected to be eased slightly but it may be too soon to see this already. Ultimately higher credit growth, though, is needed to push the euro recovery to the next level”.
“ECB will release the allocation on the 7-day MRO, which is important in order to see if the banks are drawing more liquidity following the recent decline in excess liquidity. If so, it should ease the pressure on short-term EONIA rates”.
Key Quotes
“Euro money and credit data are expected to continue to look soft. M3 growth is expected to have risen 1.4% in March close to the low level of 1.3% in February (much below ECB's old reference rate of 4.5%, which it has stopped referring to in the past years)”.
“Credit should pick up gradually during this year as lending standards are expected to be eased slightly but it may be too soon to see this already. Ultimately higher credit growth, though, is needed to push the euro recovery to the next level”.
“ECB will release the allocation on the 7-day MRO, which is important in order to see if the banks are drawing more liquidity following the recent decline in excess liquidity. If so, it should ease the pressure on short-term EONIA rates”.