If this concentration limit were to become part of the prudential framework, it could well be phased in to give you, banks, time to make the necessary adjustments. I do want to stress, though, that our ideas on concentration limits are very much in the proposal phase.
But this is not the full story. Positive demand shocks – related to the strong pick-up in demand following the relaxation of COVID-19 restrictions – have also been at play. To me, two main types of evidence point to an important role that demand shocks have played so far. First, for some time now, inflationary pressures have been increasingly broad-based.