Bank lending to companies and households in the euro zone remained stagnant last month, according to data released by the European Central Bank (ECB) on Thursday.
High interest rates, which were likely a deterrent for both borrowers and lenders, are believed to be a contributing factor.
In an effort to curb inflation, the ECB has raised borrowing costs to record levels. However, this move has had a significant impact on the economy, which has been languishing for a year.
In February, adjusted loans to households saw a modest growth of 0.3 per cent, a figure that remained unchanged from the previous month. Meanwhile, credit growth to companies saw a slight acceleration to 0.4 per cent, up from 0.2 per cent in January.
On a positive note, the amount of money in circulation within the eurozone economy stopped contracting and instead grew by a modest 0.4 per cent in February, following a 0.1 per cent increase in January.
With inflation now under control, the ECB is anticipated to begin reducing interest rates in June.
