Get 100% ad-free experienceECB Bank Lending Survey Shows No Material Impact of Higher Global UncertaintyView all comments (0)0Global uncertainty hasn’t affected loan demand or credit standards too much in the second quarter, which means that the outlook for investment is not currently deteriorating. Then again, this still gives us a view of investments muddling through.Global uncertainty has increased significantly in recent months, but the European Central Bank’s lending survey does not indicate a material drop in borrowing appetite among businesses or consumers. Banks are also not tightening credit standards significantly on the back of it.In fact, loan demand from corporates shows a small improvement, and expectations for the current quarter are again modestly better than they were for the second quarter. The breakdown of the four major economies shows that Germany and Italy see improvements in loan demand, while France sees a notable decline. Loan demand for fixed investments is not contributing positively to total loan demand, though, which is mainly because of a drop in France.For households, there continues to be a sharp increase in loan demand as the housing market continues to show strength. Households consider the level of interest rates favourable and think housing market prospects are positive. This adds to housing market strength for the months ahead.For the ECB, this adds to the view that there is no urgency for a July cut. The central bank can take the summer off and see how the economy, inflation, and geopolitical drivers of both develop. With all the uncertainty in the economy, that will be a relief to the Governing Council.Disclaimer: This publication has been prepared by ING solely for information purposes irrespective of a particular user’s means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read moreOriginal PostECB Bank Lending Survey Shows No Material Impact of Higher Global UncertaintyView all comments (0)0Latest commentsInstall Our AppScan QR code to install appRisk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.© 2007-2025 - Fusion Media Limited. All Rights Reserved.