Hence, reductions in the sizes of maximum loans on offer over the past year does not imply one-for-one reduction in credit actually extended.9 Second, given that owner-occupiers have lower incomes on average than investors, they are likely to have faced noticeable reductions in maximum loan sizes as a result of the recent tightening in serviceability practices.
More broadly, short-term public budget relief (through fast-disbursing Development Policy Operations) must be strictly and verifiably targeted to restoring fiscal space for essential social needs (Health, Education, Nutrition); a sharp focus on long-term development goals, above all the need to support food security, social safety nets and infrastructure, especially in African countries, must be maintained.