The current account deficit has increased to about 13 per cent of GDP due to strong imports in the hydropower sector, but the overall balance of payments has remained in surplus due to sizeable grants and loans disbursements. The reserve position has improved and remains comfortable. Credit has grown rapidly, mainly driven by housing and construction sectors as well as personal loans.
examines in particular the effects of monetary and macroprudential policies that lean against boom-bust cycles in housing and credit. They show that counter-cyclical -loan-to-value rules responding to credit growth do not increase inflation volatility and are effective in maintaining financial stability.