The positive trend in the loan-to-deposit ratio reflects the behaviour of households’ deposits – which, after growing sharply in 2011, remained relatively stable from 2012 onwards – and a fall in credit granted by banks. The behaviour of bank deposits contrasts with developments in other Programme countries.
The pre-Treasury Accord period also serves as an example of rather direct guidance.8 Neither is the scope nor size of the monetary policy adjustment unprecedented. It all depends on how you measure it.