China’s one-year interest-rate swaps climbed the most in a week on speculation faster money-supply gains will limit room for policy easing to support the economy.
M2, the broadest gauge of money supply, rose 13.4 percent in May from a year earlier, as new local-currency loans climbed to 870.8 billion yuan ($140 billion), according to data published by the People’s Bank of China today. That exceeded median estimates of 13.1 percent and 750 billion yuan, respectively, in Bloomberg surveys. Total social financing was 1.4 trillion yuan last month, matching analysts’ forecast.
“Faster money-supply growth will make it more difficult for the PBOC to ease monetary policy in a decisive way,” said Dariusz Kowalczyk, a Hong Kong-based strategist at Credit Agricole CIB. “New social financing slowed quite sharply, to a level that makes it challenging to stimulate growth in a conclusive way.”
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Helen Sun, Bloomberg News via CHINA US Focus http://ift.tt/TP2rH4
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