"Yes, this will slow investment in the short term, but it is better than the alternatives," Mr. Mooy said.

They also said easier money would ease debt restructuring by consumers and businesses, which was slowing spending and investment.

Beijing has been trying to slow investment in apartment buildings, factories and other fixed assets, which rose 43 percent in the first quarter.

This has slowed growth and investment in Europe and the rest of the world.

That would slow foreign investment in both stocks and bonds here, taking away an important prop for both markets.

For one, the changes would also slow investment in housing, reducing the supply of homes along with the demand.

Mervyn King, the bank's deputy governor, said falling stock prices could slow both consumer spending and investment.

The new tax is also expected to slow foreign investment in Israel's stock market.

The meeting this week also announced a series of other measures intended to slow bank credit and investment this year.

Fear that the technology is being oversold has also slowed investment, some analysts say.