The euro area loans to the consolidation of the private sector

Brusels (DPA -AFX) -loans to the private sector in the euro area has increased at a faster rate in January, because the interest rate discounts increased loans from companies and households, the data from the European Central Bank on Thursday.

Requests on the private sector extended 2.0 percent than one year ago, faster than 1.7 percent increase in December. Similarly, the loans adjusted to the private sector registered a 2.3 percent increase after increased 2.0 percent in December.

Among the loan sectors, the credit of the enterprises increased by 2.0 percent compared to one year ago, after increased by 1.7 percent in December. This was the fastest growth in July 2023, when the loans advanced by 2.3 percent.

The adjusted loans to households increased by 1.3 percent after increasing by 1.1 percent in December, they showed the data. A faster similar increase was last reported in July 2023.

The wide increase in the M3 money offer has improved to 3.6 percent from 3.4 percent in December. Also, the increase of the narrow measure M1 accelerated to 2.7 percent from 1.8 percent.

In the three months until January, the increase of M3 registered an average of 3.6 percent.

Short -term deposits, other than overnight deposits, registered an annual increase of 3.3 percent in January, compared to 4.4 percent in December. The annual rate of growth of commercializable instruments has softened at 14.7 percent from 15.8 percent a month ago.

Last month, the ECB reduced its interest rates for a fourth policy session, because it is expected that inflation will return to the target during the year. The deposit rate was reduced by 25 base points to 2.75 percent, which was the lowest of February 2023.