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FRANKFURT, July 27 (Reuters) – Lending to euro zone firms accelerated in June, confounding fears that banks are tightening entry to credit as uncertainty about inflation and the fallout of the war in Ukraine are pointing to economic downturn pitfalls, European Central Financial institution knowledge confirmed.
Lending to businesses in the 19-country euro area expanded by 6.8% in June after 5.8% a month before, though credit rating progress to households held continual at 4.6%, refreshing knowledge showed on Wednesday.
Banking institutions reported they tightened access to credit presently in the next quarter and the ECB’s quarterly lending study very last week pointed to even more warning in the present-day quarter as superior gas charges and war in Ukraine deplete savings and sap self confidence. read through additional
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This has lifted fears that the ECB’s amount hikes — started out with a 50 foundation stage boost final week and set to continue into next 12 months — could exacerbate the downturn.
The monthly stream of new loans to corporations totalled 54 billion euros final thirty day period, according to altered date, more than double the Could figure.
Expansion in the M3 measure of dollars circulating in the euro zone meanwhile slowed to 5.7% from 5.8%, partly a reflection of the ECB reduction in cash printing. That was even now ahead of expectations for 4.6%
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Reporting by Balazs Koranyi
Editing by Francesco Canepa
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