Research Detail
| 2023/05/05 / Erste Group Research |
EZ - demand for credit collapses sharply According to the ECB's latest bank lending survey, banks in the Eurozone continued to significantly tighten their credit standards for granting loans and credit lines in 1Q23. At the same time, corporate demand for credit has also fallen significantly. The generally high interest rate level was cited by businesses as a major factor for the lower demand. As expected, the Governing Council decided this week to raise key interest rates by 25bp. The ECB's statements together with the latest data now lead us to expect another interest rate hike in July, in addition to June. However, the decision is close. Ultimately, the decisive factor is that core inflation is likely to be more sticky than originally expected. |
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General information
| Author | Erste Group Research |
| Date | 2023/05/05 |
| Language |  |
| Product name | Week ahead |
| Topic in focus | Macro/ Fixed income |
| Economy in focus | Eurozone, United States |
| Currency in focus | Euro, US Dollar |
| Sector in focus | - |
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