For households, the cost of borrowing for house purchases has increased by more than 160 basis points over the course of 2022, to 2.9 per cent in December, while the rate on loans for consumption and other purposes has risen by more than 160 basis points, to now stand at almost 5.8 per cent (Chart 7, right panel).
Rising costs, in turn, have contributed to a sharp reduction in debt financing flows to firms and households (Chart 8). Chart 7 Cost of debt financing for euro area NFCs (left panel) and households (right panel) (percentages per annum)  Sources: ECB (MIR, QSA), Merrill Lynch, Refinitiv and ECB staff calculations.