Improvements in the demand for bank loans were supported by the low level of interest rates, financing needs for investment purposes and housing market prospects. Overall, the monetary policy measures in place since June 2014 have clearly improved borrowing conditions for firms and households, as well as credit flows across the euro area.
But this was being offset at the macro level by greater strength in other areas. So, in July, and again earlier this month, we raised our key policy interest rate.