Credit worthiness of firms and households should improve on account of higher net worth induced by asset price increases. Moreover, as bank funding cost should continue to decline, I expect to see a further easing of credit standards on loans to enterprises as was already noticeable in the latest ECB Bank Lending Survey. Our policy is indeed working according to plan.
Conditions in a host of asset markets, from equities to bonds or foreign exchange, have reacted in the expected way through the  BIS central bankers’ speeches  1  portfolio rebalancing transmission channel of monetary policy. In the euro area, equity prices have gone up by 13% since January.