Eurozone Money Supply Contracts and Lending Slows Amid Rate Hikes
TL;DR
The Eurozone's money supply has contracted for the first time in 13 years as lending activity slows down, raising concerns about the region's economic recovery. The European Central Bank's data showed that the annual growth rate of M3 money supply, which includes cash in circulation, deposits, and other liquid assets, fell to -0.2% in July. This decline suggests that banks are becoming more cautious in extending credit, potentially hindering economic growth in the Eurozone.
- Eurozone money supply shrinks for first time in 13 years as lending slows Financial Times
- Euro zone lending growth slows further as rate hikes bite Reuters
- Monetary developments in the euro area: July 2023 European Central Bank
- Eurozone bank lending continues to weaken as money growth turns negative ING Think
- Euro zone lending slows further as rate hikes bite RTE.ie
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