On balance, risks to this outlook for growth are judged to lie on the downside. The monetary analysis confirms the prevailing upside risks to price stability at medium to longer-term horizons. On the basis of latest available data, covering the period to the end of August, the underlying money and credit expansion remains strong.
However, strong money and credit growth may have been influenced by temporary factors, such as the flattening of the yield curve and recent financial market volatility. The headline figures may therefore overstate the underlying money and credit growth. BIS Review 114/2007  1  In August, the flow of loans to households and non-financial corporations remained strong.