The banks in the eurozone have tightened the credit guidelines for companies. This stems from an investigation by the European Central Bank (ECB) among 155 monetary houses. This step is due to the uncertain economic prospects.
For the second quarter to the end of June, further tightening of the award standards is expected. According to the survey, according to the survey, the banks assume that the demand for corporate loans will again increase somewhat. In the first quarter of the year, companies wanted to take few loans despite the sunken interest.
The ECB will probably release its monetary policy this Thursday. Experts assume that interest rates are relaxed with 0.25 percentage points. The deposit rate would then fall to 2.25 percent.
Inflation fell in the euro area
Customs turbulence has a negative influence on economic growth. Inflation in the Euro area went back to 2.2 percent in March, of 2.3 percent in the previous month. Dragging is therefore approaching the inflation objective of two percent in the medium term.
ECB president Christine Lagarde said in mid-March that rates should dampen economic growth by 0.25 percentage points. Asian export would probably be diverted to Europe, which vapores in the euro area. However, there is still room for interest rates, said the French central bank boss Francois Villeroy de Galhau. Representatives of the ECB had already spoken for a rapid reduction in the most important interest rates.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
