increase gradually later in 2015 and in 2016. the governing council will continue to closely monitor the risks to the outlook for price developments over the medium term. in this context, we will focus in particular on geopolitical developments, exchange rate and energy price developments, and the passthrough of our monetary policy measures. bis central bankers ’ speeches turning to the monetary analysis, recent data indicate a pick - up in underlying growth in broad money ( m3 ), although it remains at low levels. the annual growth rate of m3 increased to 3. 1 % in november 2014, up from 2. 5 % in october and a trough of 0. 8 % in april 2014. annual growth in m3 continues to be supported by its most liquid components, with the narrow monetary aggregate m1 growing at an annual rate of 6. 9 % in november. the annual rate of change of loans to non - financial corporations ( adjusted for loan sales and securitisation ) remained weak at – 1. 3 % in november 2014, compared with – 1. 6 % in october, while continuing its gradual recovery from a trough of – 3. 2 % in february 2014. on average over recent months, net redemptions have moderated from the historically high levels recorded a year ago and net lending flows turned slightly positive in november. in this respect, the january 2015 bank lending survey indicates a further net easing of credit standards in the fourth quarter of 2014, with cross - country disparities decreasing in parallel with an increase in net demand for loans across all loan categories. banks expect that these dynamics will continue in early 2015. despite these improvements, lending to non - financial corporations remains weak and continues to reflect the lagged relationship with the business cycle, credit risk, credit supply factors and the ongoing adjustment of financial and nonfinancial sector balance sheets. the annual growth rate of loans to households ( adjusted for loan sales and securitisation ) was 0. 7 % in november, after 0. 6 % in october. our monetary policy measures should support a further improvement in credit flows. to sum up, a cross - check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed the need for further monetary policy accommodation. all our monetary policy measures should provide support to the euro area recovery and bring inflation rates closer to levels below, but close to, 2 %. monetary policy is focused on maintaining price stability over the medium term and its accommodative stance contributes to supporting economic

tltro is conducted, thereby removing the 10 basis point spread over the mro rate that applied to the first two tltros. third, in line with our forward guidance, we decided to keep the key ecb interest rates unchanged. as regards the additional asset purchases, the governing council retains control over all the design features of the programme and the ecb will coordinate the purchases, thereby safeguarding the singleness of the eurosystem ’ s monetary policy. the eurosystem will make use of decentralised implementation to mobilise its resources. with regard to the sharing of hypothetical losses, the governing council decided that purchases of securities of european institutions ( which will be 12 % of the additional asset purchases, and which will be purchased by ncbs ) will be subject to loss sharing. the rest of the ncbs ’ additional asset purchases will not be subject to loss sharing. the ecb will hold 8 % of the additional asset purchases. this implies that 20 % of the additional asset purchases will be subject to a regime of risk sharing. separate press releases with more detailed information on the expanded asset purchase programme and the pricing of the tltros will be published this afternoon at 3. 30 p. m. today ’ s monetary policy decision on additional asset purchases was taken to counter two unfavourable developments. first, inflation dynamics have continued to be weaker than bis central bankers ’ speeches expected. while the sharp fall in oil prices over recent months remains the dominant factor driving current headline inflation, the potential for second - round effects on wage and pricesetting has increased and could adversely affect medium - term price developments. this assessment is underpinned by a further fall in market - based measures of inflation expectations over all horizons and the fact that most indicators of actual or expected inflation stand at, or close to, their historical lows. at the same time, economic slack in the euro area remains sizeable and money and credit developments continue to be subdued. second, while the monetary policy measures adopted between june and september last year resulted in a material improvement in terms of financial market prices, this was not the case for the quantitative results. as a consequence, the prevailing degree of monetary accommodation was insufficient to adequately address heightened risks of too prolonged a period of low inflation. thus, today the adoption of further balance sheet measures has become warranted to achieve our price stability objective, given that the key ecb interest rates have reached their lower bound. looking ahead, today ’ s