Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Why Eurozone Banks Are Raising Loan Rates Despite ECB Cuts
Episode 92 of The European Economy Podcast examines a puzzling disconnect: the ECB has cut its key rate twice since June 2025, yet Eurozone banks are raising lending rates on new business loans — especially in Germany and France. Lucas and Luna dig into the data, explore the role of impaired commercial real estate and rising deposit costs, and ask whether this 'pass-through failure' is choking the recovery. They reference the latest VGK and EWG ETF moves, the June US jobs miss, and Lagarde's recent hints at an early exit. A specific, numbers-driven look at why cheap…
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