On the downside, the negative feedback between the real economy and the still strained financial sector may be stronger or more protracted than expected. Concerns also relate to potential renewed commodity price rises, further protectionist pressures and persistent global imbalances. BIS Review 117/2009  1  The assessment of low inflationary pressures over the medium term is also confirmed by our monetary analysis.
In this context, we note in particular that money and credit expansion continues to decelerate. The annual growth rate of the broad monetary aggregate M3 declined to 2.5% in August, the lowest reading since the launch of the euro. As regards lending to the private sector, the annual growth rate of loans virtually stalled in August (at 0.1%).