The ECB is hiking rates at the fastest rate in its history this year in an effort to combat inflation. Credit demand is being reduced as a result, which is affecting all aspects of the economy, including the housing market, construction industry, and consumer spending.
Credit growth for businesses in the euro area fell from 4.6% in April to 4.0% in May, and credit growth for households fell from 2.5% to 2.1%.
The M3 monetary aggregate’s growth fell from 1.9% in the previous quarter to 1.4% now. Reuters polled economists, who predicted that M3 would increase by 1.5% in May 2023.
source: reuters.com
