Bank Lending Survey provides more good news for ECB

This week’s Bank Lending Survey brought more good news for the ECB. Lending conditions have continued to improve, and growth in the demand for credit points to a continued decent recovery in investment. Banks also reported that ECB policies had provided a boost to bank lending. All this supports the Bank’s assessment that risk to the economy are becoming more balanced. Nevertheless, it doesn’t point to a sharp rise in inflation. So the ECB remains a long way from tightening policy.