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Euro zone business lending unexpectedly surges in June

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The euro indication is photographed in entrance of the previous headquarters of the European Central Bank in Frankfurt, Germany, April 9, 2019. Image is taken on gradual shutter pace though the digicam was moved. REUTERS/Kai Pfaffenbach/File Photograph

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FRANKFURT, July 27 (Reuters) – Lending to euro zone organizations accelerated in June, confounding fears that banking companies are tightening access to credit history as uncertainty about inflation and the fallout of the war in Ukraine are pointing to economic downturn dangers, European Central Lender data confirmed.

Lending to businesses in the 19-region euro place expanded by 6.8% in June soon after 5.8% a thirty day period earlier, even though credit rating advancement to households held continuous at 4.6%, new details showed on Wednesday.

Financial institutions said they tightened obtain to credit rating presently in the second quarter and the ECB’s quarterly lending survey last 7 days pointed to even much more caution in the present quarter as high fuel costs and war in Ukraine deplete personal savings and sap self confidence. go through far more

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This has elevated fears that the ECB’s level hikes — began with a 50 basis issue improve last 7 days and set to keep on into next 12 months — could exacerbate the downturn.

The month-to-month circulation of new loans to organizations totalled 54 billion euros very last thirty day period, according to adjusted date, more than double the May well determine.

Development in the M3 measure of money circulating in the euro zone meanwhile slowed to 5.7% from 5.8%, partly a reflection of the ECB reduction in cash printing. That was however forward of expectations for 4.6%

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Reporting by Balazs Koranyi
Editing by Francesco Canepa

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