However, even after the soundness of their balance sheets was restored and financial institutions’ lending attitude became favorable, lending activities remained moderate. This mainly reflects a shortage of credit demand arising from sluggish economic activities and could be partially attributable to the structural issues that I would now like to discuss. IV.
In the periods of high inflation, monetary policy responded with a combination of available policy instruments through changes in policy interest rates, cash reserve ratio (CRR), statutory liquidity ratio (SLR), and in the earlier regime through increased in administered interest rates and credit control. Third, the volatility as well as incidence and duration of double digit inflation has reduced over time.