Eurozone bank lending to households and businesses increased in August, with the highest rate in ten months.

In August, eurozone bank lending to households grew by 0.6%, the highest rate in ten months, while loans to businesses increased by 0.8%. The annual growth rate for adjusted loans to the private sector rose to 1.6%. However, the European Central Bank remains cautious due to restrictive interest rates and persistent inflation. A recent study indicated that credit growth in the euro area has declined more sharply than in the U.S. during the pandemic's monetary policy tightening.

September 26, 2024
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