ECB Survey Shows Eurozone Businesses Facing High Rates and Tight Credit Ahead of This Week's Meeting

Macro
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A European Central Bank survey released on Monday shows that businesses in the eurozone faced higher interest rates and tighter credit conditions in the second quarter, amid uncertainty from the Iran conflict. Demand for financing rose slightly. Access to credit improved for large firms but declined for small and medium-sized enterprises. The report comes ahead of the ECB's monetary policy meeting this week, where markets expect rates to be held steady after a hike in June, as policymakers assess the impact of Middle East tensions on inflation and growth. Businesses also expect selling prices, input costs, and wages to rise over the next 12 months, though at a slower pace, while inflation expectations remained stable. The ECB surveyed around 5,000 firms between 21 May and 26 June.

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