World Economy

China Money Growth Slumps

China Money Growth SlumpsChina Money Growth Slumps

China’s growth in broad money supply slumped to its lowest on record in January even as new yuan loans hit a 5-1/2-year high, boosting bets that Beijing may further loosen monetary policy to avert a sharper economic slowdown, Arabnews reported. The broad M2 money supply measure in January rose just 10.8% from a year earlier, central bank data showed, the weakest pace since records started in 1998 and well under a 12.1% forecast. That was even as new yuan loans surged to 1.47 trillion yuan ($235.6b), trumping market expectations for 1.35t yuan, and more than doubling December’s 697.3b yuan.