The euro sign is photographed in front of the former headquarters of the European Central Bank in Frankfurt, Germany, April 9, 2019. The photo was taken at slow shutter speed while the camera was moving. REUTERS/Kai Pfaffenbach/File Photo
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FRANKFURT, July 27 (Reuters) – Lending to euro zone companies accelerated in June, confounding fears that banks are tightening access to credit as uncertainty about inflation and the fallout from the war in Ukraine are pointing to recession risks, central bank data showed European.
Lending to companies in the 19-nation euro zone expanded 6.8% in June from 5.8% a month earlier, while credit growth to households held steady at 4.6%, new data showed on Wednesday.
Banks said they tightened access to credit already in the second quarter, and the ECB’s quarterly lending survey last week pointed to even more caution in the current quarter as high fuel prices and the war in Ukraine drain savings and weaken confidence. Read more
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That has raised fears that the ECB’s rate hike, which began with a 50 basis point hike last week and is set to continue into next year, could worsen the slump.
The monthly flow of new loans to businesses reached 54 billion euros last month, on an adjusted date, more than double May’s figure.
Growth in the M3 measure of money in circulation in the eurozone meanwhile slowed to 5.7% from 5.8%, partly a reflection of the ECB’s reduction in money printing. That was still ahead of expectations for 4.6%
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Reporting by Balazs Koranyi Editing by Francesco Canepa
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