Company loans in the Eurozone continued to lose momentum

In June, the growth in loans provided to companies by financial institutions, including banks, in the Eurozone continued to lose momentum due to monetary tightening.

The European Central Bank (ECB) has released the monthly changes in company and consumer credits for June.

According to the data, company loans, which had seen a 4% increase on an annual basis in May, recorded a 3% rise last month. Consumer credits also saw a growth of 1.7% during the same period.

Moreover, the M3 money supply, which had increased by 1% in May, experienced a 0.6% annual growth rate in June.

The slow growth in the M3 money supply is perceived as an indicator that the future inflation rate may decelerate. However, it is now considered that the relationship between money supply and inflation has become much more complex.