Borrowing by euro zone businesses and consumers is being hit severely as the global economic outlook darkens, according to a European Central Bank survey released on Friday that could act as an additional deterrent to further rises in official interest rates.
The sharp tightening in the credit standards applied by banks and a decline in demand for loans, especially by large businesses and house buyers, suggest that the global financial turmoil and fallout from the US slowdown are having a significant impact on the 15-country euro zone.
The ECB and the Fed will be forced to inject much more liquidity in the financial system. The global economy, meanwhile, will keep slowing down. Interest rates will continue declining. Commodities will follow the trend of interest rates, as they always do,
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
1 comment:
Today economic situation in the world is very complicated and I must confess that many things are not clear to me. I think that roles on the international stages are changing and that Obama wants to keep the status of the most powerful country for the US. But what’s gonna happen to European countries? For a long time they were an example of financial prosperity and stability but now the situation is different. I’m sure that many people in Greece live through service with same day payday loans and still can’t pay down the debt caused by the crisis.
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