The FLP is designed to provide domestic banks with an additional source of wholesale funding at interest rates commensurate with achieving our monetary policy mandate. Lower bank funding costs should embed the retail borrowing and lending costs we need to be successful. Our communication challenge remains ongoing despite the successful implementation of these new monetary policy tools.
The annual rate of change of loans to non-financial corporations (adjusted for loan sales and securitisation) remained negative at –1.8% in September, after –2.0% in August and –2.2% in July. On average over recent months, net redemptions have moderated from the historically high levels recorded a year ago.