Last autumn, it was argued by many commentators that the continued buoyancy of lending to the non-financial private sector in the euro area was misleading, because it represented “re-intermediation” effects triggered by the tensions themselves.
The money market is deepening, and the bond market is also evolving. The above conditions indicate that the private financial markets are getting deeper and sophisticated enough to warrant further steps on the part of the Central Bank to gradually withdraw as a dominant player in the forex market.