ECB Survey Shows Tighter Lending and Stable Inflation Outlook for Eurozone Firms

The European Central Bank's latest survey on enterprise finance indicates a notable increase in interest rates on bank loans for both small and large euro area businesses in Q2 2026. While financing needs saw a slight rise, the availability of bank loans remained largely consistent, with some differences between firm sizes. The survey also suggests that expectations for selling prices, input costs, and wage growth are set to moderate over the next year, with overall inflation expectations remaining stable across various horizons.