Reports indicate that corporate credit demand in the Euro Area has increased for the first time in the past 2 years. The European Central Bank (ECB) has released a report covering the third quarter of the year based on the “Bank Lending Survey” in the Euro Area. According to the report, there was a moderate increase in credit demand from companies in the Euro Area during the third quarter of the year. The statement from the ECB mentioned that banks did not change their tightened lending standards for companies in the third quarter, which has been in place for over two years. The statement also highlighted that the lower interest rates compared to the previous year have led to an increase in companies’ credit demand. It was mentioned that there was a strong recovery in demand for housing loans and a more moderate increase in consumer credit. The statement indicated that while credit standards for housing loans to households eased, they tightened for consumer loans. Housing loan demand recovered strongly with expected interest rate cuts and improved housing market expectations. Additionally, financial institutions expect credit demand to continue increasing in the fourth quarter, while banks in the Euro Area anticipate tightening lending standards by the end of the year. The ECB’s “Bank Lending Survey,” which provides information on credit conditions for banks in the Euro Area, is conducted four times a year. The latest survey conducted between September 6-23 involved 156 financial institutions. The ECB had previously reduced deposit rates by 25 basis points and main refinancing and marginal lending rates by 60 basis points in line with market expectations on September 12. The bank lowered the deposit rate from 3.75% to 3.50%, and the refinancing and marginal lending rates to 3.65% and 3.90%, respectively. The ECB’s next interest rate meeting is scheduled for October 17, with expectations of a 25 basis point reduction in the deposit rate to 3.25%.