October SLOOS Points to Persistent Credit Tighteningđ€
On the data front, the October Senior Loan Officer (SLOOS) survey showed continued tightening credit standards and weaker demand for commercial and industrial loans. Banks continued to cite a worsening economic outlook for tightening lending standards with reduced risk tolerances, though things have improved slightly from the worst levels seen earlier in the year. However, easing financial conditions should hopefully thaw some of the frozen liquidity pipes in the quarters ahead, giving support to the market's ongoing faith in a soft-landing.
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