BERLIN – Growth in lending to euro zone companies slowed again in July, adding to already mounting evidence that sharply higher interest rates are putting a brake on credit creation and economic growth.
Lending to firms in the 20-nation currency bloc expanded by 2.2 percent year-on-year after a 3-percent reading a month earlier, while household credit growth slowed to 1.3 percent from 1.7 percent 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 3.5 percent to 3.75 percent, its highest level since 2000, before euro banknotes and coins h…
Keep on reading: Euro zone lending growth slows further as rate hikes bite
