ECB’s Bank Lending Survey clearly shows contraction in credit supply and demand
Peter Goves (MFS Investment Management)| We believe ECB policy rates have most likely peaked for this cycle. This argument is based on three pillars: growth dynamics, the inflation outlook and what the ECB itself is communicating. On growth, the euro area is currently operating in a quasi-recessionary environment. Although we don’t technically have two quarters of negative GDP prints, Q3 growth was -0.1% and below ECB expectations. The vast majority…