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BIZCHINA / Center
Money supply up 18% in August
By Fei Ya (China Daily)
Updated: 2007-09-13 09:52
China's financial system remained stable in August, the central bank said
yesterday.
The annual growth in the broad measure of money supply, or M2, was 18.09
percent in August from the same period last year, according to the
People's Bank of China (PBOC).
The narrow measure of money supply, or M1, continued to grow in August at
22.77 percent year-on-year, the PBOC said.
In August, new bank loans increased 302.9 billion yuan as total bank
loans rose to 27.1 trillion yuan (US$3.59 trillion), an increase of 16.96
percent year-on-year.
Total bank deposits increased 646.2 billion yuan in August. But household
bank deposits continued to slide, falling 41.8 billion yuan from July.
Consumer price index increased 6.5 percent in August from a year earlier
mainly on food costs.
Jun Ma, chief economist at Deutsche Bank (Hong Kong), said he believes
the likely timing of next interest rate rise will be in the second half
of September.
PBOC raised the amount that commercial banks must hold in reserves to
12.5 percent last week, in order to strengthen liquidity management in
the banking system and curb the fast rise in loans.
Earlier in August, the central bank had raised interest rates for the
fourth time this year.
(For more biz stories, please visit Industry Updates)
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