- 3 year ahead unchanged at 2.5%
- 5 year ahead unchanged at 2.2%
This is not going to change anything for the ECB but it’s a welcome news nonetheless for them.
On the bank lending side, banks reported a small net tightening of credit standards. This was unexpected as, in the previous survey round, banks had anticipated that credit standards would remain unchanged.
Perceived risks to the economic outlook contributed to tighter credit standards. Banks also cited the current high level of geopolitical uncertainty and trade risks as reasons for discriminating across sectors or firms when issuing new loans, and several banks indicated intensified monitoring and analysis.
The bank lending survey is for Q3, so if the small tightening in credit standards was mainly due to tariff uncertainty, then we could see things getting better in Q4.
This article was written by Giuseppe Dellamotta at investinglive.com.