Jan 9, 2010
China central bank vows more effective policy
BEIJING: China’s central bank will further improve the effectiveness of its monetary policy implementation, making it more targeted, while maintaining its appropriately loose stance, vice-governor Yi Gang said in comments posted yesterday.
The statement on the People’s Bank of China website said he made the comments recently during a trip to south China, a Reuters report said yesterday.
The central bank raised the interest rate on three-month bills by four basis points on Thursday, a move that many analysts said was an incremental step in mopping up liquidity but which the market saw as the beginning of more serious tightening.
Bloomberg quoted a Bank of China official as saying that China’s January lending would be curbed as the central bank this month may start directing banks on how much they can lend.
New credit may fall to less than 2.6 trillion yuan (US$381bil) in the first quarter from 4.58 trillion yuan in the equivalent period a year earlier, Bank of China analyst Shi Lei wrote in a note yesterday.
Banks may offer 1.2 trillion yuan of new loans in January as the central bank introduced its so-called “window guidance” to lenders, he said.
China’s central bank said this week it would target “moderate” loan growth in 2010, adding to signs that policymakers would not allow a repeat of last year’s record expansion in credit that raised concerns over asset bubbles.
The People’s Bank of China on Thursday sold three-month bills at a higher interest rate for the first time in 19 weeks.
Rising bill yields and credit tightening could be effective in containing inflation expectations, Bank of China’s Shi said.
Chinese banks tend to front-load their loans in the first quarter so that they can record interest income earlier.
Meanwhile, AFP reports that China has become the top world exporter ahead of Germany, trade figures released yesterday by the German national statistics office showed.
In the 11 months to November, Chinese exports reached a total value of US$1.07 trillion, while German exports amounted to 734.6 billion euros, or US$1.05 trillion, the data showed.
In November, the German trade surplus nonetheless climbed to 17.2 billion euros, according to seasonally corrected figures from the Destatis service, from 13.6 billion in October amid a pick up in global trade.
Germany is slowly recovering from its worst recession since World War II, but its economy, the biggest in Europe, is nonetheless expected to have contracted by around 5% in 2009. — Agencies
China central bank vows more effective policy
BEIJING: China’s central bank will further improve the effectiveness of its monetary policy implementation, making it more targeted, while maintaining its appropriately loose stance, vice-governor Yi Gang said in comments posted yesterday.
The statement on the People’s Bank of China website said he made the comments recently during a trip to south China, a Reuters report said yesterday.
The central bank raised the interest rate on three-month bills by four basis points on Thursday, a move that many analysts said was an incremental step in mopping up liquidity but which the market saw as the beginning of more serious tightening.
Bloomberg quoted a Bank of China official as saying that China’s January lending would be curbed as the central bank this month may start directing banks on how much they can lend.
New credit may fall to less than 2.6 trillion yuan (US$381bil) in the first quarter from 4.58 trillion yuan in the equivalent period a year earlier, Bank of China analyst Shi Lei wrote in a note yesterday.
Banks may offer 1.2 trillion yuan of new loans in January as the central bank introduced its so-called “window guidance” to lenders, he said.
China’s central bank said this week it would target “moderate” loan growth in 2010, adding to signs that policymakers would not allow a repeat of last year’s record expansion in credit that raised concerns over asset bubbles.
The People’s Bank of China on Thursday sold three-month bills at a higher interest rate for the first time in 19 weeks.
Rising bill yields and credit tightening could be effective in containing inflation expectations, Bank of China’s Shi said.
Chinese banks tend to front-load their loans in the first quarter so that they can record interest income earlier.
Meanwhile, AFP reports that China has become the top world exporter ahead of Germany, trade figures released yesterday by the German national statistics office showed.
In the 11 months to November, Chinese exports reached a total value of US$1.07 trillion, while German exports amounted to 734.6 billion euros, or US$1.05 trillion, the data showed.
In November, the German trade surplus nonetheless climbed to 17.2 billion euros, according to seasonally corrected figures from the Destatis service, from 13.6 billion in October amid a pick up in global trade.
Germany is slowly recovering from its worst recession since World War II, but its economy, the biggest in Europe, is nonetheless expected to have contracted by around 5% in 2009. — Agencies