China Monetary Statistics For February 20129 March, 2012, 18:58. Posted by Zarathustra
Tags: Economy, Monetary Statistics, Money Supply, People's Bank of China
The People’s Bank of China published the latest set of monetary statistics for February.
M2 Money supply grew by 13.0% yoy, slightly up from 12.4% in January, and more or less in-line with market expectation of 12.9% growth. M1 money supply grew by 4.3%, and currency in circulation increased by 8.8%.
New loans for February amounted to RMB 710.7 billion, well below market expectation of RMB750 billion. Total loans outstanding (RMB loans) amounted to RMB56.24 trillion. Meanwhile, deposits increased by RMB1.6 trillion, with total deposits (RMB deposits) outstanding amounted to RMB81.74 trillion.
On the whole, money and credit data have not responded much on the 2 RRR cuts. Loans growth remains weak, and recent media reports suggest that weakness in loans demand will continue in March. I would speculate that a weakened economy dampen some demand for loans in the short-term, which makes recent easing somewhat ineffective.
Source: People’s Bank of China