credit squeeze


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Credit Squeeze

A situation in which it is difficult to finance through borrowing. A credit squeeze often occurs when economic growth is declining and/or when interest rates rise. The Federal Reserve is often blamed for credit squeezes when they raise target interest rates, but it may occur through private sector actions as well, such as a systemic rise in bad debt. See also: Credit crunch.

credit squeeze

Restricted bank lending that is accompanied by rising short-term interest rates and a decline in economic growth. Credit squeezes are generally attributed to policy actions of the Federal Reserve.

credit squeeze

an attempt by the monetary authorities to reduce the amount of CREDIT granted by financial institutions to consumers and businesses, in order to reduce the level of spending in the economy. A credit squeeze forces up INTEREST RATES, affecting businesses by reducing consumer demand and raising the cost of financing stockholding and investment. See MONETARY POLICY.

credit squeeze

any action taken by the monetary authorities to reduce the amount of CREDIT granted by COMMERCIAL BANKS, FINANCE HOUSES, etc. Such action forms part of the government's MONETARY POLICY directed towards reducing AGGREGATE DEMAND by making less credit available and forcing up INTEREST RATES.
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While the office market is showing a few cracks from the housing slump and the credit squeeze, the industrial market seems none the worse for wear.
But the bold rate cuts of recent weeks and measures to support SMEs should help prevent a further credit squeeze but the impact is unlikely to be immediate.
Firms were asked about the impact of the credit squeeze and the slowing economy and around 80% reported this was having an effect on their business.
The economy has weakened dramatically even before the full impact of the credit squeeze and housing downturn has been felt.
Mr Cunningham fears the credit squeeze will threaten this provision but was told an announcement would be made soon on plans for more affordable homes to rent or buy.
THE credit squeeze may be pushing travel insurance to the bottom of the pile for hard-up holidaymakers.
It was thought that soaring household bills and the credit squeeze would deter shoppers.
We are all feeling the pinch with high taxation, increasing household bills and the credit squeeze.
MANAMA: The international information technology industry remains upbeat despite the recent credit squeeze worldwide, reveals a survey.
The credit squeeze appears to be tightening its grip with five per cent of workers opting to sell their holidays back to the company instead of taking the time out themselves.
Banking shares remained under pressure amid no end in sight to the credit squeeze affecting the mortgage market.
The yield on the benchmark 10-year Japanese government bond closed lower Wednesday on lingering concerns about a credit squeeze and recession in the United States.