Steps likely to aid growth on credit warning signs
China’s plunge in credit expansion last month and an unexpected slowdown in investment spending have flashed warning lights on growth that investors and economists bet will spur policy makers to expand stimulus. Barclays Plc is forecasting two second-half interest-rate cuts, while Australia & NewZealand Banking Group Ltd said a reduction in banks’ reserve requirements is imminent. China will keep “reasonable and appropriate” growth in money supply and credit while maintaining a “prudent” monetary policy stance, the State Council said in a statement published on Thursday. “The top concern right now is to make sure the economy can be reasonably smooth in its growth, rather than controlling the risks,” said Li Daokui, a former central bank academic adviser.