A survey indicates that companies in the Eurozone face high interest rates and tight credit conditions following the Iran-Iran conflict, which has increased economic uncertainty. Markets are watching this week's ECB meeting closely.
On July 20, 2569 at 15.00:XNUMX p.m., Bloomberg News reported that A survey by the European Central Bank (ECB) released on Monday indicates that businesses in the eurozone faced higher interest rates and tighter lending conditions in the second quarter of the year. Amid the uncertainties surrounding the Iran-Iran war,
The survey found that the demand for capital by businesses increased slightly, while access to credit improved for large companies, but decreased for small and medium-sized enterprises (SMEs).
The report was released ahead of the ECB's monetary policy committee meeting in Frankfurt this week, the final meeting before the summer break. Markets expect the ECB to keep interest rates unchanged after raising them at its June meeting, as it awaits to assess the impact of the renewed conflict in the Middle East on inflation and economic growth.
Furthermore, the survey, one of the key pieces of data the ECB uses to inform its monetary policy decisions, also indicated that businesses expect the prices of goods sold, raw materials and non-labor production factors, as well as wages, to continue rising over the next 12 months, although the rate of increase has slowed compared to the previous survey. Meanwhile, inflation expectations remain largely unchanged.
The ECB surveyed approximately 5,000 companies between May 21 and June 26.
refer : bloomberg.com
Read news related to All European economic situations can be found here.
