Bank lending across the eurozone accelerated in July, with both businesses and households recording stronger credit growth, according to data released by the European Central Bank.
The improvement came during the first full month following the ECB’s first interest rate increase in nearly three years, providing an encouraging indication that credit activity remained resilient despite the shift in monetary policy.
Loans to non-financial companies increased at an annual rate of 4.4% in July, strengthening from 4.0% in June.
Household borrowing also continued to expand, with annual lending growth edging up to 3.1% from 3.0% in the previous month.
The figures point to continued demand for financing across the eurozone economy, with corporate lending showing the clearest acceleration during the period.
The latest data will provide policymakers with further insight into how the ECB’s recent rate increase is feeding through to borrowing conditions, while the continued expansion in credit suggests lending activity entered the second half of the year with positive momentum.
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