Eurozone Loan Growth Rises Slightly In June
(RTTNews) - Eurozone loan growth improved slightly in June but the overall pace of expansion remained subdued, data published by the European Central Bank showed on Thursday.
Adjusted loans to the private sector logged an annual growth of 1.1 percent after rising 0.8 percent in May.
Among the borrowing sectors, loans to households posted a steady growth of 0.3 percent. At the same time, the increase in loans to businesses grew at a faster pace of 0.7 percent following a 0.3 percent gain. Further, data showed that the broad monetary aggregate M3 increased 2.2 percent on year, faster than the revised 1.5 percent increase seen in May and economists' forecast of 1.8 percent.
The narrow measure M1, which comprises currency in circulation and overnight deposits, declined 3.4 percent but slower than May's 5.0 percent decrease.
"Loan growth to the private sector seems to be bottoming out, though the pace of growth remains a weak spot," ING economist Peter Vanden Houte said.
The economist said the policy transmission is working. "In combination with the recent weak sentiment data, this seems to keep hopes for a rate cut in September alive," he added.
Eurozone Bank Lending Growth Improves In September
German Business Confidence Improves For First Time In 5 Months
Eurozone Private Sector Activity Shrinks
German Private Sector Downturn Eases In October
French Manufacturing Sentiment Deteriorates In October
ECB's Kazimir Says All Options Remain On Table For December
ECB's Kazaks Says Falling Inflation, Weak Economy Allow For Lowering Rates Further
