The expected inflation and the term premium components of the nominal interest rate are self-explaining: when buying a long term bond I want a return that could compensate me for the potential loss in my future purchasing power, and for the risk of a potential capital loss if I needed to sell the bond prior to maturity.
The success of regulatory interventions, provision of ample banking system liquidity, coupled with the government’s efforts to boost credit demand conditions in the economy was reflected by credit offtake in various sectors.