HICP inflation is now expected to remain high for a more protracted period than previously thought. Upside risks to price stability over the medium term are also confirmed by the continuing very vigorous money and credit growth and the absence of significant constraints on bank loan supply up to now. At the same time, the economic fundamentals of the euro area are sound.
c.  Rural liquidity and credit  There has been an increase in liquidity flowing to the agricultural sector, both from land sales, as well as from a rise in agricultural credit (Chart 10). More loans to agriculture have fostered substantial private investment in agriculture, but may also have pushed up rural wages.