FRANKFURT (Reuters) – Euro zone banks expect to tighten credit standards for business and housing loans in the first quarter and experience a moderation in loan demand, the European Central Bank said on Tuesday in a quarterly survey of the bloc’s top banks.
Buying 2.6 trillion euros ($3 trillion) of public and private bonds over the past four years, the ECB has pushed borrowing costs to record low, hoping to stimulate borrowing and spending, all with the ultimate aim of boosting inflation.
Scheme - Concerns - Borrowing - Costs - Euro
But its stimulus scheme is now winding down, raising concerns that borrowing costs could rise just as the euro zone economy is going through its biggest growth slump in years.
“Net demand for loans continued to increase (in the fourth quarter), but banks expect some moderation in demand over the next three months,” the ECB said in a survey of 147 lenders.
Quarter - Credit - Standards
In the last quarter of 2018, credit standards...
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