Nevertheless, they should not lead to the conclusion that the strong recent dynamism of M3 can be discounted. The fact remains that the underlying rate of monetary expansion continues to be strong. Higher policy rates and short-term interest rates are starting to influence monetary and credit dynamics, although, as yet, they have not significantly dampened their overall strength.
The growth of credit to the private sector has moderated somewhat, though it seems to have stabilised at double-digit rates. Borrowing for financial transactions – notably in the context of securitisation activities, private equity transactions and leveraged buyouts (LBOs) – has supported strong rates of credit expansion.