Regarding the mortgage component of private sector credit, it can be expected that the slowdown in house price increases and, in time, a reduction in housing volume to more sustainable levels should also lead to a slowdown in mortgage credit growth. However, we will remain concerned until we see some evidence of such a slowdown.
New macro-prudential framework The aim of macro-prudential policy is to manage risk in the financial system arising from transient but pervasive macro-financial developments, such as credit and asset price cycles or major international financial shocks. While micro-prudential policy settings (e.g.