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
A Wales international rugby player has apologised after he "blacked-up" as a Swansea City footballer for a fancy dress photograph.
Theresa May is considering options to secure statutory powers for child sex abuse inquiry but it may require 'disbanding' current panel.
London mayor Boris Johnson is backing Olympics supremo Seb Coe as his replacement.