Several central banks had started reviewing their monetary policy framework, even before COVID-19 in a context of low interest rate and below-target inflation rate. Given the current context and changing dynamics, the Bank will bring up to date its monetary policy strategy. Financial stability 47.
Bank loans to the private sector continue to rise, growing year-on-year by 5.1 per cent in July 2020, from 4.1 per cent in May 2020, the highest pace recorded since May 2019. Annual growth in bank loans was supported by both households and corporate borrowings. 48. The capital and liquidity positions in the banking sector remain strong, well above the regulatory limits.