FRANKFURT (Reuters) -Growth in bank lending across the euro zone continued to accelerate in August, hitting multi-year highs as lower interest rates helped the flow of credit, European Central Bank
Euro Zone Bank Lending Growth Reaches Multi-Year Highs in August
Overview of Euro Zone Lending Trends
FRANKFURT (Reuters) -Growth in bank lending across the euro zone continued to accelerate in August, hitting multi-year highs as lower interest rates helped the flow of credit, European Central Bank data showed on Thursday.
Business Credit Growth
Credit growth to businesses picked up to 3.0% in August from 2.8% a month earlier to reach its highest level since mid-2023, while loan growth the households rose to 2.5% from 2.4%, its best rate since April 2023.
Household Loan Growth
Having cut interest rates by 200 basis points in the year to June, the ECB is banking on cheaper credit boosting investment and spending across a bloc that has struggled with lacklustre economic growth for years.
Impact of ECB Interest Rate Cuts
The M3 measure of money circulating in the euro zone, often an indicator of future activity, meanwhile expanded by 2.9%, below expectations for 3.3%, partly reflecting steady reduction in the ECB's balance sheet.
(Reporting by Balazs KoranyiEditing by Francesco Canepa)
