Domestic credit expansion

The concept of D.C.E.

In the Letter of Intent to the International Monetary Fund of 22nd May, the Chancellor of the Exchequer reaffirmed that the Government attached the greatest importance to monetary policy in general, and to the achievement of a satisfactory rate of domestic credit expansion in particular. "It is the Government's policy to ensure that the course quarter by quarter of domestic credit expansion as a whole, and of the central government borrowing requirement within it, is consistent with the intended result for the year as a whole, and to take action as appropriate to this end." The Government have thus placed considerable emphasis upon the rate of domestic credit expansion (D.C.E.) in its capacity as an additional indicator, in the monetary field, of the performance of the economy.

Domestic credit expansion