Faster growth in euro-zone lending to business yesterday strengthened the case for further European Central Bank interest rates increases.

Lending to non-financial corporations increased at an annual rate of 12.9 per cent last month - up from 12.7 per cent in September and the fastest since the launch of the euro in 1999, according to ECB figures yesterday.

However, growth in consumer credit and lending for house purchases slowed - suggesting interest rate increases were already hitting households.

The data highlighted the robustness of euro-zone economic activity. The strong euro-zone borrowing figures also almost certainly reflected merger and acquisition activity as well as business investment plans.