Quotes from Barclays Capital:
-Money growth in eurozone is increasing slowly, but should pick up further in the coming months as a result of the second TLTRO, although less than initially intended by the Central Bank. The stabilization in bank lending is continuing, with significant improvement in Italy and Spain, but the dynamics remain subdued, in line with the soft economic situation and the ongoing deleveraging.
-The bank lending channel of monetary policy remains partly inefficient and the past ECB actions have been insufficient to kick start money growth and bank lending, which supports our view that the Governing Council is likely to announce new measures at its 22 January meeting, including an extension of its asset purchase programme to government bonds.
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