Borrowing by eurozone businesses and consumers is being hit severely as the global economic outlook darkens, according to a European Central Bank survey released on Friday that could act as an additional deterrent to further rises in official interest rates.

The sharp tightening in the credit standards applied by banks and a decline in demand for loans, especially by large businesses and housebuyers, suggest that the global financial turmoil and fallout from the US slowdown are having a significant impact on the 15-country eurozone.