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Investing.com -- The European Central Bank’s lending survey indicates that global uncertainty has not significantly impacted loan demand or credit standards in the second quarter, suggesting investment outlook remains stable, according to ING analysts.
Corporate loan demand showed a slight improvement, with expectations for the current quarter modestly better than for the second quarter.
Among major economies, Germany and Italy experienced improvements in loan demand, while France saw a notable decline.
Loan demand for fixed investments is not contributing positively to total demand, primarily due to a drop in France.
Household loan demand continues to increase sharply as the housing market shows strength.
Households view current interest rate levels as favorable and have positive perceptions of housing market prospects, which points to continued housing market strength in the coming months.
According to ING analysts, these findings support the view that there is no urgency for the ECB to cut interest rates in July.
The central bank can take time during the summer to monitor developments in the economy, inflation, and geopolitical factors that influence both.
Given the current economic uncertainty, this approach will likely be welcomed by the ECB’s Governing Council, ING analysts said.
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