The growth from quarter to quarter in the average total domestic credit extension fell from 23.6 per cent in the first quarter of 1997 to 6.2 per cent in the third quarter. The growth in total bank credit extended to the private sector also declined to a level of less than 10 per cent in the third quarter.
Developments in the M3-money supply were less satisfactory. The growth rate in M3 measured over twelve months declined from 16.5 per cent in March 1997 to 12.7 per cent in June, but then accelerated again to 16.3 per cent in September 1997.