Eurozone Corporate Lending Growth Slows Amid ECB Rate Hikes

The Eurozone's corporate lending growth has slowed down significantly, according to data released by the European Central Bank (ECB). In August, annual growth in loans to non-financial corporations in the Eurozone decreased to 4.2%, down from a three-year high of 4.4% in July. This slowdown comes as the ECB continues to raise its deposit rate to combat rising energy prices and inflationary concerns linked to the conflict in Iran.

The ECB has already raised its deposit rate twice this year, reaching 2.50%. Household loan growth remained steady at 3.1%, maintaining its highest level since early 2023. The Eurozone M3 broad money supply expanded by 3.5% year-on-year in August.