Euro area firms face higher bank loan interest rates and financing costs in Q1 2026
Updated
Updated · European Central Bank · Apr 27
Euro area firms face higher bank loan interest rates and financing costs in Q1 2026
9 articles · Updated · European Central Bank · Apr 27
A net 26% of firms reported increased loan rates and 37% saw higher financing costs, with 10,544 firms surveyed across the euro area.
Financing needs remained stable but loan availability declined slightly, while short-term inflation expectations rose to 3.0% and selling prices are expected to increase by 3.5%.
The war in the Middle East contributed to higher cost expectations, and firms anticipate marginally lower external financing availability and continued profit deterioration despite optimism for future investment.
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