Steps likely to aid growth on credit warn­ing signs

China Daily (Canada) - - BUSINESS -

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.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.