ECB faces inflation headache even as lending improves

Frankfurt

LENDING to eurozone firms grew at the fastest pace since early 2012 last month but the European Central Bank may still come under pressure to ramp up its stimulus measures as falling oil prices and a slowdown in China curb inflation.

Credit to companies, arguably the most important driver for long-term recovery, grew by 0.9 per cent from 0.2 per cent in June and lending growth to households picked up to 1.9 per cent from 1.7 per cent, data showed on Thursday.