, the weaker growth momentum is delaying their pass - through to inflation. over the medium term, inflation is expected to increase, supported by our monetary policy measures, the ongoing economic expansion and solid wage growth. turning to the monetary analysis, broad money ( m3 ) growth stood at 5. 6 % in november 2019, broadly unchanged since august. sustained rates of broad money growth reflect ongoing bank credit creation for the private sector and low opportunity costs of holding m3 relative to other financial instruments. the narrow monetary aggregate m1 continues to be the main contributor to broad money growth on the components side. the growth of loans to firms and households remained solid, benefiting from the ongoing support provided by our accommodative monetary policy stance, which is reflected in very low bank lending rates. while the annual growth rate of loans to households remained unchanged from october, at 3. 5 % in november, the annual growth rate of loans to non - financial corporations moderated to 3. 4 % in november, from 3. 8 % in october, likely reflecting some lagged reaction to the past weakening in the economy. these developments are also visible in the results of the euro area bank lending survey for the fourth quarter of 2019, which indicate weakening demand for loans to firms, while demand for loans to households for house purchase continued to increase. however, credit standards for both loans to firms and loans to households for house purchase remained broadly unchanged, pointing to still favourable credit supply conditions. overall, our accommodative monetary policy stance will help to safeguard very favourable bank lending conditions and will continue to support access to financing across all economic sectors and in particular for small and medium - sized enterprises. to sum up, a cross - check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed that an ample degree of monetary accommodation is still necessary for the continued robust convergence of inflation to levels that are below, but close to, 2 % over the medium term. in order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively to raising the longer - term growth potential, supporting aggregate demand at the current juncture and reducing vulnerabilities. the implementation of structural policies in euro area countries needs to be substantially stepped up to boost euro area productivity and growth potential, reduce structural unemployment and increase resilience. the 2 / 3 bis central bankers'speeches 2019 country - specific recommendations should serve as the relevant signpost. regarding fiscal policies, the euro

area fiscal stance is expected to continue to provide some support to economic activity. in view of the weak economic outlook, the governing council welcomes the eurogroup ’ s call in december for differentiated fiscal responses and its readiness to coordinate. governments with fiscal space should be ready to act in an effective and timely manner. in countries where public debt is high, governments need to pursue prudent policies and meet structural balance targets, which will create the conditions for automatic stabilisers to operate freely. all countries should intensify their efforts to achieve a more growth - friendly composition of public finances. likewise, the transparent and consistent implementation of the european union ’ s fiscal and economic governance framework over time and across countries remains essential to bolster the resilience of the euro area economy. improving the functioning of economic and monetary union remains a priority. the governing council welcomes the ongoing work and urges further specific and decisive steps to complete the banking union and the capital markets union. we are now ready to take your questions. 3 / 3 bis central bankers'speeches