ECB Rate Hike Can't Slow European Lending Growth

Despite the European Central Bank's recent interest rate hike, lending by European banks has accelerated in July. The ECB reported that loans to non-financial corporations grew by 4.4% year on year in July, up from 4% in June.

The year-on-year growth in loans to households also rose to 3.1% in July, up from 3% in June.

Analysts caution that further tightening of monetary policy could squeeze lending demand in the second half of the year, but for now, it seems that European banks are continuing to lend with confidence.