To mitigate systemic risk in the financial sector, a central bank's macroprudential authority decides to increase the countercyclical capital buffer (CCyB), requiring commercial banks to hold a higher percentage of capital against their risk-weighted assets during a credit boom.
Which one of the following is the most likely macroeconomic consequence of this policy action?
An increase in the rate of inflation due to higher bank operational costs
A reduction in the growth of bank lending and short-run aggregate demand
An automatic increase in the liquid assets held by commercial banks
A fall in the interest rates charged on commercial and residential loans
