RTTNews - Thursday, the European Central Bank said weakness in housing market activity, demand and supply dynamics suggest that house price growth in the euro area would possibly moderate further.

The central bank added that historical experience indicates that house prices might sometimes overshoot or undershoot their long term trend as frictions and lags in the adjustment of the housing supply imply a dominant role for potentially volatile housing demand.

The ECB had introduced monetary policy and liquidity management measures that are unprecedented in nature, scope and magnitude. The central bank said in its monthly bulletin that these non standard measures will take some time to feed through to the economy in full.

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