Eurozone lending languishes as ECB prepares to cut

BANK lending in the eurozone continued to languish in April as record-high interest rates likely put off lenders as well as borrowers.

The European Central Bank looks set to lower interest rates next week after its biggest ever streak of hikes brought down inflation to just above its 2 per cent target but also choked off credit.

Banks increased their loans to companies by just 0.3 per cent year on year in April, after a 0.4 per cent rise in March. Lending to households grew by 0.2 per cent, stable from the month before.

On the upside, a measures of money circulating in the euro area, which often leads economic activity, rose by 1.3 per cent, the highest print in a year. REUTERS