ECB Hiking Sends Corporate Loan Demand Down Most on Record
- Bank Lending Survey shows credit standards tightened further
- Poll is key input for ECB as it nears end of rate-hiking cycle
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Demand for loans among companies in the euro zone plunged by the most on record in the second quarter — a clear signal that the European Central Bank’s yearlong campaign of interest-rate hikes is feeding through to the 20-nation economy.
The drop, which was “substantially stronger” than lenders expected, came alongside a further decline in demand for mortgages and other consumer borrowing, according to the ECB’s Bank Lending Survey, published Tuesday.