May 6 (Reuters) - U.S. banks reported tightening lending standards and weaker loan demand for business loans, and weaker demand for most types of household loans, according to a Federal Reserve survey of senior bank lending officers published on Monday.
Fed officials had the survey results in hand last week when they decided to keep the policy rate steady in the 5.25%-5.5% range and said they plan to hold them there as long as needed to bring down inflation.
Monetary policy tightening typically works to ease price pressures through credit channels, with higher borrowing costs reducing demand for loans. (Reporting by Ann Saphir and Lindsay Dunsmuir Editing by Chris Reese)
