Credit growth slowed last month, a sign that the cash crunch delivered some of what policymakers were hoping for. But credit is still expanding more than twice as fast as economic output, which means that a further slowdown will be needed to bring credit risks under control. Meanwhile, interbank rates have fallen sharply since late June. A key challenge for policymakers in the next few months will be to rein in credit without resorting to further destabilising shocks to the financial system.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services