When actions by the Australian Reserve Bank affect bank lending and consequently borrowers find it more difficult to find funding,this effect is called the:

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The credit channel refers to the effect that changes in monetary policy have on bank lending and consequently on the ability of borrowers to access credit. When the Reserve Bank of Australia tightens monetary policy, it may increase interest rates which can make it more difficult for borrowers to obtain loans, and consequently reduce spending and economic activity. This mechanism is known as the credit channel.

When Actions by the Australian Reserve Bank Affect Bank Lending