The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
China’s central bank shifted its tone on the economy, emphasising that it will control excessive money supply amid signs of a recovery.
The People’s Bank of China (PBOC) said it’ll keep good control of the money supply “floodgate†and not “flood†the economy with excessive liquidity, according to a statement. That wording had been dropped from the previous quarter’s report, and its return signals increasing restraint in liquidity management as the economy improves.
China’s “economy has shown healthy development and economic growth is resilient,†with improvement in both market expectations and financial support for the economy, according to the statement from the first-quarter meeting of the monetary policy committee, which was held on April 12. The panel is chaired by PBOC Governor Yi Gang.
“The importance of risk prevention will likely rise and there may be small policy tweaks,†Zhang Wenlang, analyst at Everbright Securities Cot Ltd. wrote in a research note, adding the PBOC’s concern on domestic and global economy has lessened.