Rate hikes have created debt-servicing difficulties – ECB study
Research also points to overall robustness in eurozone’s household lending sector
The post-Covid hike in eurozone interest rates means households are facing increased difficulty in servicing loans, research from the European Central Bank suggests.
The working paper by Spyros Palligkinis uses a microsimulation based on data collected in 2020–21 from the Eurosystem’s Household Finance and Consumption Survey. This is updated with quarterly country-level macroeconomic and financial developments between the time of data collection and Q2 2023, covering four quarters of tightening
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