BEIJING (Reuters) – China’s yuan lending is expected to rise sharply in March from February’s jump as the central bank keeps policy accommodative to support the fledgling economic recovery, a new Reuters poll showed. Bounce on decline.
Bank of China estimated to have issued 3. Trillion RMB (13. 100 million yuan) Net new RMB loans last month, up from 1.12 trillion yuan, according to the estimated median value in the survey Economists. New loans are expected to increase by 3.5% vs. 3. Trillion RMB issuance compared with the same period last year.
New lending fell sharply in February after credit growth hit a record high in January. Still, if March’s figures are in line with expectations, total loans in the first quarter will reach a record high of 9. 16 trillion yuan.
In order to stimulate economic growth, the central bank cut the bank reserve requirement ratio (RRR) for the first time in March.
The central bank promises that the growth rate of money supply and total social financing this year will basically be consistent with the nominal economic growth rate.
Estimated growth in outstanding RMB loans . survey showed .6% in February. March broad M2 money supply growth seen at .7%, lower than
.2 Months 9%.
China has set 52 The quota for local government special bond issuance was raised from 3.8 trillion yuan to 3. trillion yuan last year. An acceleration in government bond issuance could help boost Total Social Financing (TSF), a broad measure of credit and liquidity . As of the end of February, the scale of outstanding social financing increased by 9.9% year-on-year, faster than the annual growth rate of 9.4% at the end of January.