Thanks to these corrections, as well as to the strengthening of Europe’s governance and the start of structural reforms, today there is scope for measures to support demand. Political and financial tensions can still affect market stability in the area, but the risks of contagion are fewer than in the recent past.
Lending rates are the composite rate, incorporating all loan types and lengths, for both households and corporates. Conclusion The Governing Council has increased interest rates in order to counter the increase in inflation brought about by successive and over-lapping supply shocks.