Current money supply moderate
( 2001-05-17 14:50 ) (10 )

The People's Bank of China, the country's central bank, announced its Quarterly Report on Monetary Policy for 2001 on May 14, giving an overall analysis to monetary policy, macro-economy, financial market and banking operation.

According to the report, current money supply can basically meet the market needs.

First, money supply could keep pace with economic growth, but currency circulation saw a little decrease. By the end of March, broad money supply, M2, increased by 13.2 percent, falling to the predicted 13-14 percent, but 3.8 percent higher than the sum-total of the predicted economic growth and consumer price rise.

Secondly, banking loans saw a reasonable increase with its composition being adjusted. By the end of the first quarter, various loans in financial institutions rose by 13.9 percent, almost the same as against the same period, and the end of last year as well. In the first three months, resident housing loan, student loan and individual consumption loan accounted for 23 percent, infrastructure construction and technological innovation took up 18 percent and agricultural loan by 12 percent.

Thirdly, currency interest rates remain stable. At the end of March, weighted average rate of inter-bank call-money was 2.58 percent and weighted average rate of securities repurchase stood at 2.5 percent.

The report also made an analysis on international financial situation and its influence on China.