Lending to households, which tends to move more in line with the turning points in economic activity, was 0.3% lower in September than a year earlier. The monthly loan flows to households have however been positive and increasing since May this year.
Monetary policy is well equipped to address some of these challenges, less so for others. Two developments are particularly salient to the conduct of monetary policy: Neutral interest rates are likely to be lower than in the past, which means that central banks will have less room to lower their policy interest rates in the face of large adverse shocks to the economy.