China economists expect interest rate, RRR moves in coming weeks: China Daily

0
64
© Reuters. FILE PHOTO: People walk past PBOC headquarters in Beijing© Reuters. FILE PHOTO: People walk past headquarters in

SHANGHAI (Reuters) – is expected to adjust money and credit supplies in coming weeks, including cuts to interest rates or reserve ratio requirements, in order to counter “downside risks”, the official Daily said, citing economists.

Stronger measures are required to maintain liquidity in the financial market and support infrastructure investment, the paper said. The moves are now more likely after data showed that China’s broad money supply and new yuan loans grew more slowly than expected in May.

Chinese banks extended 1.18 trillion yuan in net new yuan loans in May, up from 1.02 trillion yuan in April, People’s Bank of China (PBOC) data showed on Wednesday, but less than the 1.225 trillion yuan expected by analysts.

Broad M2 money supply grew 8.5% from a year earlier in May, below analysts’ estimates of 8.6%, and unchanged from April.

Article continues below Advertisement...

Citing experts, China Daily said financial institutions were facing tighter liquidity in June, with authorities requiring a higher credit expansion rate in order to meet targets and issue more bonds to finance new infrastructure.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, ) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the , it is one of the riskiest investment forms possible.

Source: Investing.com