And if businesses or consumers know that they have to pay more for a loan than their credit standing would justify, they will not even ask for credit. That is exactly where the second part of our package of measures kicks in.
And we are likely to see a further increase in banks' cost of funding, a tightening of credit standards and a deceleration in the growth of lending volumes. There could also be a drop in consumer and investor confidence and lower overall aggregate demand. However, it is too early to draw conclusions about the impact all of this will have on growth and inflation.