Eurozone private lending hits new record

Private lending in the eurozone hit a fresh record high in May, expanding at an 11.4 percent rate year over year, the European Central Bank said on Thursday in data that raised pressure for higher interest rates.
Money growth also kept up its healthy pace, with M3 expanding at an 8.9 percent year-over-year rate, its highest in just over three years and up from 8.7 percent in April. Mortgage lending, however, appeared to plateau, posting growth of 12.1 percent in May after an upwardly revised six-year high of 12.2 percent in April.
"The data is strong, growing definitely, and it further supports the case for more ECB tightening," said Rainer Guntermann, economist at Dresdner Kleinwort in Frankfurt.
The data were roughly in line with forecasts in a Reuters poll, where 40 economists on average had predicted M3 growth of 8.8 percent and loans to the private sector up 11.4 percent. Private sector lending was revised upward to 11.4 percent from a previously reported 11.3 percent.