Euro zone companies’ borrowing binge accelerated in Aug – ECB

FRANKFURT (Reuters) – Euro zone companies extended their borrowing binge in August, taking on bank loans at the fastest pace since 2008 despite rising interest rates, European Central Bank data showed on Tuesday.

Bank lending to companies rose by 8.7% in August from 7.6% in July, while lending to households grew at a steady 4.5%, the data showed.

The ECB started raising interest rates in July to try to cool record-high inflation but so far this has not discouraged borrowing from banks, which have been slower than financial markets in raising their lending rates.

(Reporting By Francesco Canepa; Editing by Alex Richardson)