Eurozone and UK Lending Gains Momentum Following Interest Rate Cuts, According to Fitch Ratings

Fitch Ratings reports that bank lending in both the eurozone and the United Kingdom is showing signs of acceleration following recent interest rate reductions, which have begun to stimulate economic activity. Mortgage lending is emerging as the main driver of household credit growth, particularly in Spain, while corporate lending is gaining traction in France, Spain, and the UK, with overall corporate credit growth in the latter reaching 6%.

The European Central Bank’s latest survey of loan officers highlights an increasing demand for mortgages, indicating renewed confidence in the housing market. In contrast, lending in the United States is recovering at a more gradual pace. While commercial and consumer credit are expanding, real estate lending in the U.S. remains subdued, Fitch noted.

The agency also pointed out that continued private sector surpluses across Europe and the U.S. are contributing to a reduction in debt-to-GDP ratios, supporting broader financial stability in both regions.