The Financial Conduct Authority will still need to study the evidence surrounding payday loans before it decides whether to impose a credit limit.
Capping the cost of credit and the number of times the loan can be rolled over is a major market intervention.
It could bring huge benefits for consumers as a recent study in Japan has indicated, but experience in Germany and France has shown there can be equally momentous unintended consequences including reduced access to credit for the poorest and most vulnerable consumers, even driving them to illegal loan sharks.
These international lessons demonstrate that we need robust evidence to support any decision to introduce such a cap.
More top news
After the heatwave come the storms, with lightning flashes illuminating the night sky across much of the country last night.
An Independence Day event at a UK base has been cancelled by the US Air Force over security fears.
British firms predict the economy should sustain a "solid" pace of growth for the rest of the year thanks to lower oil prices and inflation.