FRANKFURT (Reuters) – Bank lending to euro zone businesses and households slowed again in April, continuing a steady decline that began last autumn as the economy stalled and rapid interest rate hikes interest are reducing demand for credit, according to data from the European Central Bank (ECB) released on Tuesday.
Business loans in the 20-nation currency bloc rose 4.6% year-on-year in April, following a 5.2% rise the previous month, while household credit growth slowed to 2. 5% after +2.9% the previous month.
Lending has slowed sharply in recent months due to the economic slowdown and the rapid tightening of monetary policy by the ECB. Surveys predict that lending figures will be even weaker in the coming months.
Money supply (M3) growth in the euro zone slowed to 1.9% from 2.5% in the previous month, which is lower than the forecast for growth of 2.1% according to a Reuters survey.
(Report Balazs Koranyi; Victor Goury-Laffont, edited by Blandine Hénault)
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