as well as on geopolitical, energy and exchange rate developments. turning to the monetary analysis, recent data confirm robust growth in broad money ( m3 ). the annual growth rate of m3 was 5. 0 % in may 2015, compared with 5. 3 % in april. annual growth in m3 continues to be strongly supported by its most liquid components, with the narrow monetary aggregate m1 growing at an annual rate of 11. 2 % in may. loan dynamics continued to improve. the annual rate of change of loans to non - financial corporations ( adjusted for loan sales and securitisation ) increased to 0. 1 % in may, up from – 0. 1 % in april, continuing its gradual recovery from a trough of – 3. 2 % in february 2014. this is consistent with the positive evidence from the bank lending survey for the second quarter of 2015. banks reported a continued net easing of credit standards on loans to enterprises which was stronger than expected in the previous survey round. net demand for loans to enterprises increased further, supported by demand for credit related to fixed investment. fragmentation in terms of credit demand in individual countries decreased and the targeted longer - term refinancing operations helped to improve the terms and conditions for credit supply. despite these improvements, the dynamics of loans to non - financial corporations remain subdued. they continue to reflect the lagged relationship with the business cycle, credit risk, credit supply factors, and the ongoing adjustment of financial and non - financial sector balance sheets. the annual growth rate of loans to households ( adjusted for loan sales and securitisation ) increased to 1. 4 % in may 2015, after 1. 3 % in april. overall, the monetary policy measures we have put in place since june 2014 provide clear support for improvements both in borrowing conditions for firms and households and in credit flows across the euro area. to sum up, a cross - check of the outcome of the economic analysis with the signals coming from the monetary analysis confirms the need to maintain a steady monetary policy course, firmly implementing the governing council ’ s monetary policy decisions. the full implementation of all our monetary policy measures will provide the necessary support to the economic recovery in the euro area and lead to a sustained return of inflation rates towards levels below, but close to, 2 % in the medium term. monetary policy is focused on maintaining price stability over the medium term and its accommodative stance contributes to supporting economic activity. however, in order to reap the full benefits from

our monetary policy measures, other policy areas must contribute decisively. given continued high structural unemployment and low potential output growth in the euro area, the ongoing cyclical recovery should be supported by effective structural policies. in particular, in order to increase investment, boost job creation and raise productivity, both the implementation of product and labour market reforms and actions to bis central bankers ’ speeches improve the business environment for firms need to gain momentum in several countries. a swift and effective implementation of these reforms, in an environment of accommodative monetary policy, will not only lead to higher sustainable economic growth in the euro area but will also raise expectations of permanently higher incomes. fiscal policies should support the economic recovery while remaining in compliance with the stability and growth pact. full and consistent implementation of the pact is key for confidence in our fiscal framework. we are now at your disposal for questions. bis central bankers ’ speeches