Eurozone bank lending stagnated again in February
Bank lending to eurozone companies and households continued to stagnate last month, with high interest rates likely to have discouraged borrowers as well as lenders, European Central Bank data showed on Thursday (Mar 28).
The ECB has jacked up borrowing costs to record highs to tame inflation, but this has taken a heavy toll on the economy, which has been in the doldrums for a year.
Adjusted loans to households grew by only 0.3 per cent in February, unchanged from the previous month. Growth in credit to companies accelerated slightly to 0.4 per cent from 0.2 per cent in January.
On the upside, the quantity of money circulating in the eurozone economy was no longer shrinking, instead growing at a still meagre 0.4 per cent in February after a 0.1 per cent increase in January.
With inflation now under control, the ECB is expected to start cutting interest rates in June. REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
China’s CICC demotes senior bankers, cuts pay to slash costs
Citi promotes Damien Tan to corporate banking head for Singapore
Australian dollar firm as bulls bet on hawkish turn at RBA
ECB rate cut case getting stronger, says chief economist Lane
RBNZ has limited scope to cut cash rate this year: OECD
Crypto.com wants to sponsor more sports after Formula One Miami