FX.co ★ Eurozone Credit Growth Accelerates Ahead of ECB Rate Hike

Bank lending to Eurozone households increased by 3.1% year-on-year to €7.21 trillion in May 2026, up from 3.0% in April and surpassing market expectations of 2.9%. Household credit demand grew at its fastest pace since February 2023, ahead of the European Central Bank’s first interest rate hike in three years, planned for June. Lending to businesses rose by 4.0% in May, marking the strongest gain in three years. Overall private sector credit, covering both households and non-financial corporations, expanded by 3.9%, its highest rate since March 2023, compared with 3.5% in the previous month.