Eurozone private sector loans drop

THE annual growth rate of loans to the private sector in the Eurozone slowed in June, making it harder for the European Central Bank to argue for a further hike in interest rates.

ECB figures released yesterday showed loans to the private sector rose at an annual rate of 2.5 per cent, down from 2.7 per cent in May and weaker than analysts’ expectations for 2.8 per cent growth.