According to the recent publication of the Euro Area monetary development has declined during April 2011 compared to previous months: the annual growth rate for M3 declined from 2.3% during March to 2.0% during April 2011.
On the other hand, the annual growth rate of loans to private sector moderately inclined from 2.5% in March to 2.6% in April.
These data imply a moderate drop in the inflation pressures; this might be among the factors that will persuade the ECB to keep the current basic interest rate at its current level of 1.25%.
For more on this subject:
- Weekly outlook for May 30 June 3
- Will the recent rally in oil prices last? Daily outlook 26 May
- US initial claims increased last week May 26