The lower floor may give added flexibility to intervene in the foreign exchange market in a future confidence crisis. Lending rates are falling and loan growth is surging. Both trends should continue. Of course, there is much more to be done on this point. Consumer lending rates remain far too high and the level of consumer loans outstanding almost is non-existent.
Inflation is down, probably for good.
This, too, is attainable. Bank lending policies are becoming more sophisticated. New lending rules went into effect April 3 that require banks to differentiate levels of risk among borrowers. Banks must begin analyzing potential borrowers individually and make lending decisions based on individual track records, rather than based on the track record of an applicant's demographic group. This process is being helped by the rapid evolution of credit check services.