2023-08-28 10:49:27
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Companies in the euro area are asking for fewer loans.
(Foto:Â Getty Images)
Berlin Lending growth to companies in the euro area continues to weaken. In July, banks granted 2.2 percent more loans to companies than a year earlier, the European Central Bank announced on Monday. In June, growth was 3.0 percent.
The financial institutions extended 1.3 percent more loans to private households in July than a year earlier. In June, growth was slightly higher at 1.7 percent.
The data on lending is one of the important indicators for the ECB, which will again decide on the key interest rate in September. With the tight interest rate, the ECB wants to dampen the flow of credit and thus the economy. This should succeed in reining in the strong upward pressure on prices in the euro area.
According to experts, changes in the money supply can provide clues as to how inflation will develop further. The so-called M3 money supply surprisingly decreased by 0.4 percent in July. Experts polled by Reuters had expected stagnation. In June there was still an increase of 0.6 percent. M3 includes, but is not limited to, cash, current account deposits, and money market paper and debt securities.
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