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MNI BRIEF: PBOC To Stabilise Credit Growth As Economy Recovers

MNI (Singapore)
(MNI) Beijing

The People’s Bank of China will stabilise credit supply after fast expansion in the first quarter, while maintaining liquidity at sufficiently ample levels to consolidate the momentum of economic recovery, People’s Bank of China head of the statistics and analysis Ruan Jianhong told reporters in a briefing on Thursday.

Domestic financial market volatility has prompted a flow from wealth management products into banks since the second half of 2022, contributing to the rapid rise of M2, together with fast loan growth and increased investment in government bonds, she said. (See MNI PBOC WATCH: LPR On Hold Amid Rebound; Alert To SVB Fallout)

In contrast, March’s soft M1 came as investment and production sentiment remained weak, she said. Household sector deposits also increased at a slower pace, indicating improving confidence in that sector, she continued.

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