|
Lending to firms in the 20-nation currency bloc expanded by 2.2%
year-on-year after a 3.0% reading a month earlier, while
household credit growth slowed to 1.3% from 1.7% in June,
according to an ECB report.
The European Central Bank raised interest rates for the ninth
time in a row in July, increasing the rate that the ECB pays on
banks' deposits from 3.50% to 3.75%, its highest level since
2000, before euro banknotes and coins had been put into
circulation.
At 5.3% in July, inflation remains far above the bank's target
and could take until 2025 to fall back to the 2% target.
Preliminary inflation data for August will be published on
Thursday, with analysts polled by Reuters forecasting a decline
in inflation to 5.1%.
Economic data from PMI surveys in August showed the downturn in
euro zone business activity deepened far more than thought this
month in a broad-based fall across the region.
Economic growth indicators are now pointing to a contraction in
the third quarter, despite what could be a record-breaking
tourism season. The weak data is intensifying debate over just
how much more the ECB needs to do.
The M3 measure of money supply, seen in the past as a good
indicator of future economic expansion, shrank 0.4% in July in a
turnaround from growth of 0.6% in June, below expectations for a
reading of 0.0%.
(Reporting by Maria Martinez, Editing by Rachel More and Hugh
Lawson)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
