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According to analysts at ANZ, China’s credit impulse over the first two months of the year was lower than initially expected but the pace of credit expansion has still exceeded the nominal GDP growth rate.

Key Quotes

“Lower M2 money supply growth in February reflects a still slow pace of money creation. This implies that the PBoC will still cut the reserve requirement ratio (RRR).”

“PBoC official signal that they have no intention of cutting rates but want to reduce the risk premium faced by small and medium-sized enterprises (SME).”