Bonds & Rates
Home›Bonds & Rates›Central Banks›ECB SAFE survey finds higher euro loan rates alongside…
ECB SAFE survey finds higher euro loan rates alongside easing inflation views
In the survey, the share of firms reporting higher bank loan interest rates rose to 42% from 26% in the prior quarter, while 12-month selling price expectations fell to 3.2%.
Forexlive reports that the ECBs latest Survey on the Access to Finance of Enterprises, SAFE, found euro area companies saw a sharp jump in borrowing costs in the second quarter of 2026, even as overall access to bank credit was broadly stable.
According to the survey, 42% of firms reported higher interest rates on bank loans, up from 26% in the previous quarter. Loan demand increased modestly and loan availability was little changed overall, but the financing picture diverged by firm size, with large companies reporting improved access while SMEs saw a slight deterioration, nudging the bank loan financing gap to 3% from 2%.
The SAFE also pointed to moderating inflation expectations. Firms expected selling prices to rise 3.2% over the next 12 months, down from 3.5%, with non-labour input cost growth slowing to 5.2% from 5.8% and wage growth expectations easing to 2.5% from 2.8%, while one-year and three-year inflation expectations stayed at 3.0% and five-year expectations edged up to 3.1%.
Forexlive adds that companies continued to cite the general economic outlook as the biggest obstacle to securing external financing, though banks willingness to lend improved further. The survey also noted the Middle East conflict effect on business through measures like supplier diversification, energy efficiency investment, and inventory building, and it said firms expect most next years AI investment to be funded from internal sources, at 72%.