6  BIS Review 138/2009  but close to, 2% in the Harmonised Index of Consumer Prices over the medium term. This definition sets a clear benchmark against which decisions must be made.
In addition, the Federal Reserve's weekly bank credit data suggests that bank loans to households and to nonfinancial businesses contracted sharply in the third quarter. These declines reflect the fact that weak economic growth can both damp demand for credit and lead to tighter credit supply conditions.