Weak bank lending in Eurozone due to uncertainty hampers monetary easing, indicating economic slowdown

From Investing.com: 2025-06-30 05:41:00

Monetary easing is slowing down the growth of borrowing among businesses and households, indicating a leveling off trend. The European Central Bank reports a year-on-year growth in bank lending, but recent numbers show weakening effects of monetary transmission. Bank lending to non-financial corporates declined in May, while lending to households saw a plateau in growth. Uncertainty in the economy is causing businesses to be more reluctant to borrow for investment. The ECB is expected to pause rate cuts in July to assess the economic environment amidst increasing uncertainty, potentially leading to a further rate cut in September.



Read more at Investing.com: Weak Eurozone Bank Lending Suggests Uncertainty Is Hampering Monetary Easing