China’s bank lending increased notably in March, data from the People’s Bank of China showed on Monday.
Bank extended CNY 3.13 trillion local currency loans in March, which was also above the expected level of CNY 2.67 trillion. Lending had totaled CNY 1.23 trillion in February.
The total social financing, the measure of broad credit, increased sharply to CNY 4.65 trillion from CNY 1.19 trillion in the previous month. The expected level was CNY 3.7 trillion.
The M2, the broad measure of money supply, advanced 9.7 percent year-on-year, faster than the 9.2 percent increase in February. The rate was expected to remain unchanged at 9.2 percent.
Credit growth will probably continue to accelerate in the coming months amid declines in borrowing costs and support to the housing market, Sheana Yue, an economist at Capital Economics, said.
The next public easing measure could come as soon as this Friday when the PBoC is likely to cut the rate on its medium-term lending facility (MLF) by 10 basis points, the economist added. That said, a sharp acceleration in credit growth is not expected.
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