FXStreet (Delhi) – Teunis Brosens Senior Economist at ING, notes that the recent Bank lending survey has showed that the low rates effect is starting to wear off. Key Quotes “The ECB Bank Lending survey shows that the upward trend in Eurozone credit continued steadily in the third quarter. A net 33% of Eurozone banks reported increasing demand for household mortgages, which is down from the record high 49% in 2Q, but it is still very strong.” “Especially disappointing is the fact that there is no sign of an investment pick-up: The net percentage of banks reporting higher loan demand due to increasing investment activity was little changed at 11%.” “While the ECB claims that QE continues to support bank lending, the low rate-effect appears to be wearing off. The availability of low rates has become less important for households: a net 35% of banks report low rates as reason for households to take out (or refinance) a mortgage, down from 45% in 2Q.” “All in all, the Bank Lending Survey gives us “more of the same”: the credit recovery is continuing, showing that the Eurozone recovery is keeping pace. But is that good enough?” “We would really have liked to see an acceleration of business lending as a signal of business confidence translating into higher investment activity. More verbal sabre rattling by ECB President Draghi tomorrow is likely, but will it convince Eurozone businesses to start investing?” For more information, read our latest forex news.