However, the low levels of interest rates have contributed to the high demand for liquid assets. The current level of interest rates is also counterbalancing the negative impact of subdued economic growth on credit demand. In fact, the growth of loans to the private sector has stabilised at relatively robust levels since the beginning of the year.
At the current juncture, the ample liquidity is not expected to translate into inflationary pressure. However, monetary growth needs to be closely monitored, as the significant amount of excess liquidity could become a source of concern if it were to persist when economic activity strengthens significantly.