The ECB’s October lending survey reports tighter third-quarter credit standards for firms and consumer credit, while housing standards were unchanged. The net share reporting tighter business standards was 9%; the net balance reporting changes in business-loan demand was -6%. Higher interest rates were the main drag on demand. Banks expected further tightening in the fourth quarter and weaker housing and consumer borrowing, while several anticipated growing demand to finance AI infrastructure.
Related currencies / asset groups: EUR
The ECB reports third-quarter net tightening of business-loan standards by 9% of banks, unchanged housing standards, and tighter consumer-credit standards.
European Central BankBusiness-loan demand declined on a net balance of -6% in the third quarter, primarily because of interest rates; several banks expected gradual growth in AI-infrastructure financing demand.
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