China’s bank lending and money supply accelerated at a faster-than-expected pace in March. That’s exacerbating policymakers’ concerns about excess liquidity in the world’s second-largest economy, where inflation is expected to accelerate at its fastest pace since 2008.
New yuan-denominated loans stood at 679.4 billion yuan ($104 billion) in March, while the country’s broad money supply (M2) rose 16.6 percent from a year earlier to reach 75.8 trillion yuan. The figure exceeds the whole-year target of 16 percent set by the People’s Bank of China (PBOC) at the beginning of this year, a statement on the central bank’s website showed on Thursday.
Read more at Inflation battle set to redouble