Looking ahead, the picture is bleak. 

The ECB’s bank lending survey indicates that there is further credit standard tightening ahead and that demand for loans continues to weaken, which should translate into a 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝗱 𝘀𝗹𝘂𝗴𝗴𝗶𝘀𝗵 𝗹𝗲𝗻𝗱𝗶𝗻𝗴 𝗲𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁. This will result in 𝘄𝗲𝗮𝗸𝗲𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 in the second half of this year and early next. That comes on top of an already stagnating eurozone economy and increases the risk of recession

The credit slump environment mentioned early this year is confirming month by month. Increased borrowing costs and slowing demand create an 𝗲𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁 𝗳𝗼𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘄𝗵𝗲𝗿𝗲 𝘀𝘁𝗿𝗼𝗻𝗴 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗶𝘀 𝗸𝗶𝗻𝗴.

What are your thoughts?

Source: https://think.ing.com/snaps/eurozone-bank-lending-falls-again-in-june-as-ecb-hikes-take-effect