09:27 AM EDT, 03/27/2025 (MT Newswires) -- Bank lending growth in the eurozone increased again in February for both businesses and households, note ING.

Growth rose from 1.3% in January to 1.5% in February for households and from 2% to 2.2% for businesses. This is historically still quite weak as it remains below the growth rates seen between 2017-19, but those growth rates could possibly be reached over the course of the year if financial conditions ease, wrote the bank in a note.

This shows that the impact of the European Central Bank easing continues to have the desired effect on the economy, stated ING. With lending growth accelerating out of stagnation, this represents a careful improvement of monetary conditions.

Given the pace, though, it's also clear that the ECB is still not stimulating the economy, according to the bank.

The modest pace of bank lending suggests that only a small acceleration of private investment can be expected for 2025, added ING. At the same time, massive public investment plans on defense and German infrastructure are being floated, which can improve investment for the medium term.

So, monetary transmission becomes less relevant for investment if sizable fiscal support does come through, concluded ING.