Since robust bank credit growth may continue in the period leading up to the accession of some new Member States to the euro area and even in the years following the adoption of the euro, it is pertinent to consider whether this could have a bearing on the euro area as a whole in the future.
As mortgages are renewed at higher rates, more households will feel the restraining effects of monetary policy. Business investment is also expected to soften in the year ahead, dampened by weaker demand for Canadian exports and higher financing costs.