- ECB continues to provide nominal anchor to recovery
- Nominal rates to remain low for a long period
- Real interest rates in euro area expected to decrease
- Essential that countries follow stability and growth pact
- Can already see signs that bank health checks have affected speed and quality of deleveraging
- Banks will be in a stronger position to resume new lending once checks have been concluded and residual uncertainties removed
- Expects stronger take up from banks in Dec TLTRO operation and subsequent installments
Benoit Coeure also speaking in Slovenia
Again, I don’t understand why banks need to wait. Either they’ve already toned down risky lending or they or your average European borrower is still too risky to lend to.
