>> Euro zone: the economic recovery is losing momentum in June
>> Euro zone: economic activity close to stagnation in July
>> Inflation in the Eurozone in August at its lowest level in three years
>> The ECB will lower its rates again, uncertainty for the future
| Between mid-2022 and autumn 2023, the ECB drastically raised its key rates to combat excessively high inflation. |
| Photo : AFP/VNA/CVN |
After two and a half years of decline, demand for loans from European households started to rise again this summer, favored by the reduction in the ECB’s key rates that began in June.
Demand increased sharply for housing loans, driven by “improving housing market prospects”, according to the survey carried out in September among 156 banks in the euro zone.
As for consumer loans, the increase is “more moderate”supported by “consumer confidence and spending on durable goods”according to the investigation.
Between mid-2022 and autumn 2023, the ECB drastically raised its key rates to combat excessively high inflation.
The subsequent contraction in credit cooled economic activity, as desired by the ECB in order to bring inflation back towards an annual increase of 2%.
For the fourth quarter, banks expect an increase in demand in all loan segments, especially for housing.
Another visible improvement: the granting criteria, that is to say the banks’ internal directives or the conditions for approving loans, have continued to become more flexible for the purchase of housing. A dynamic which should continue in the fourth quarter.
However, the criteria for granting consumer loans have tightened.
For businesses, credit criteria have remained frozen, after more than two years of tightening, indicated the ECB.
The survey falls two days before the ECB meeting which should move towards a further cut in its rates on Thursday October 17, with recent data on inflation being reassuring, while concern is growing for the growth in the euro zone.
Several members of the board of governors of the Frankfurt Monetary Institute, including the heads of the German central banks, Joachim Nagel, and French central banks, François Villeroy de Galhau, have sent signals in this direction in recent days.
AFP/VNA/CVN
