Fitch: Monetary tightening is slowing credit growth in developed economies
International credit rating agency Fitch Ratings has announced that the growth of loans provided to households and businesses has slowed in Europe, the US, Australia, and Canada due to the impact of monetary tightening.
12punto
Fitch Ratings released a statement regarding its latest credit conditions update. The statement highlighted that, due to the impact of monetary tightening, the growth in loans provided to households and businesses has slowed, noting that bank lending has contracted on an annual basis in Spain and Italy, and has also decelerated in France and Germany.
The statement pointed out that commercial and industrial loans in the US have slowed compared to a year ago and are growing "barely," while noting that higher interest rates have had a strong impact on mortgage loans in Canada and Australia.
The statement emphasized that central bank senior loan officer surveys indicate a sharp slowdown in credit demand from European businesses, despite a moderate tightening in bank lending standards.
The statement pointed out that commercial and industrial loans in the US have slowed compared to a year ago and are growing "barely," while noting that higher interest rates have had a strong impact on mortgage loans in Canada and Australia.
The statement emphasized that central bank senior loan officer surveys indicate a sharp slowdown in credit demand from European businesses, despite a moderate tightening in bank lending standards.