In addition, banks have tightened their lending standards in response to growing numbers of bad real estate loans.

Indeed, Japan's central bank actually tightened the screws on the economy last summer, abandoning its previous policy of zero short-term interest rates.

Mexico's central bank tightened monetary policy for the first time in nearly a year, citing concerns over rising inflation expectations and wage increases.

But some economists said there is still a chance that the central bank could tighten monetary policy.

"The process now is one of credit restraint where funds are readily available in the financial markets, but banks are tightening their standards."

Mr. Greenspan gave little guidance, though, about whether the central bank would tighten policy further later in the year.

As the investigation gathered momentum, banks tightened security for Russian companies and citizens.

China's central bank today tightened bank lending for the seventh time this year after data showed the economy surging to new highs.

As central banks around the world tightened monetary conditions, investors appeared to lose all appetite for taking risks.

But banks have tightened their loans to the industry out of fear that cable was no longer a good bet.