Incentives underpinning the TLTROs (Targeted Long-Term Refinancing Operations) are resulting in the cheaper funding costs being passed-on to customers, particularly in vulnerable euro area countries (Chart 3). 3 / 10  BIS central bankers' speeches  4 / 10  BIS central bankers' speeches  Euro area activity has been improving against this backdrop of easing financing conditions.
Higher employment has boosted labour incomes and consumption, and investment has begun a cyclical recovery. Global growth prospects are showing signs of strengthening and may well further support the recovery. Indeed, despite the waning support from oil prices, growth has continued to broaden and gain momentum. While risks to the outlook remain on the downside, they are less pronounced than before.