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ECB to keep an eye on fragmentation and credit growth

Looking at the flow of credit, the credit impulse may yet disappoint to support stronger growth. The ECB is thus likely to continue struggling with its optimistic views of a sizeable recovery in investment over the coming years, something for which much more leadership from politicians will be needed.

"While the net take-up of the ECB's TLTRO programme has been broadly in line with our expectations (we expect another net €45bn tomorrow), the recovery in bank lending (and business investment) remains lacklustre", says Societe Generale.

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