Weakness in the U.S. economy As the effects of the U.S. government's spring fiscal stimulus package wear off, a fall in U.S. domestic demand seems likely. Household credit growth has slowed sharply and will likely slow further. Indeed, credit conditions faced by U.S. households have tightened despite the cumulative 3.25-percentage-point reduction in policy interest rates.
The SBP has developed a regular consultative mechanism whereby the views and comments of Pakistan Banking Association are sought and incorporated in the draft policies, circulars and regulations. Fourth, the role of market discipline and monitoring has to be enhanced.