Bank lending to businesses in the eurozone dropped sharply in August while household borrowing ticked up slightly. Overall, higher rates and weak economic activity will dampen investment in the quarters ahead, keeping economic activity sluggish at best. After months of declining bank lending to corporates at the end of last year, things broadly stabilised between January and July. August, however, saw a sharp drop in bank lending with growth of -0.4% on a month-on-month seasonally adjusted basis. That introduces an element of uncertainty around the pace of monetary transmission for the European Central Bank, which ... (full story)