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
The mother of missing RAF gunner Corrie McKeague is in the Suffolk town of Bury St Edmunds to retrace her son's last known steps
Wet across western Scotland & N.Ireland. Rain clears eastwards overnight.
Brexit Secretary David Davis has denied claims Theresa May's key speech on Britain's exit from the EU was influenced by Boris Johnson.