FRANKFURT (Reuters) – Bank lending in the euro zone remained sluggish in April as interest rates appeared to discourage lenders and borrowers.
The European Central Bank is expected to cut interest rates next week, after successive unprecedented hikes brought inflation just above the 2% target, leading to a reduction in credit.
Banks increased their lending to businesses by some 0.3% year-on-year in April, following a 0.4% increase in March. Loans to households increased by 0.2%, a stable figure compared to the previous month.
The money supply circulating in the euro zone, on the other hand, increased by 1.3%, its highest level in a year.
(Reporting Francesco Canepa; French version Dagmarah Mackos, editing by Kate Entringer)
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