Bank lending in the Eurozone saw a slight increase of 0.3% in May, as reported by a study from the European Central Bank.

This growth follows several months of low levels attributed to record-high interest rates, which likely deterred both lenders and borrowers, according to BNR.

The 0.3% rise in bank lending is compared year-on-year to the same month last year, marking a slight acceleration from a 0.2% increase observed in April. Notably, this represents the slowest pace of credit growth for households since early 2015, notes national radio sources.

Similarly, bank credit extended to non-financial corporations also saw a slight uptick in May, increasing to 0.3% from 0.2% in the previous month.

Overall credit growth across the private sector, encompassing households and non-financial firms, moderated to 0.8% after a 0.9% rise the month before.

These figures precede the European Central Bank's June 6 meeting, where it announced its first interest rate cut since 2019. Following the meeting, the ECB adjusted its base refinancing rate to 4.25%, the lending facility rate to 4.50%, and the deposit rate to 3.75%.

From July 2022 to September 2023, the eurozone's central bank increased interest rates by a total of 450 basis points in response to severe inflation across the 20 countries using the euro. In October 2022, inflation reached a peak of 10.6%.