China to boost money supply by 17%
15-12-2008
China's State Council has announced that it will raise the country's money supply by 17 percent next year, boost policy loans by 100 billion yuan, and urge commercial banks to lend more in its latest attempts to fight the global downturn. In a statement posted on the Government's website, the State Council said China must expand the scope of its financial supports to advance the stable and fast-paced development of the economy. It called for a 17 percent increase in the country's money supply -- or cash in circulation plus all deposits -- next year. The Council also said it would increase funding to policy banks by 100 billion yuan; and commercial banks would be urged to extend loans beyond the four trillion yuan in borrowing expected to be issued this year. The cabinet also said lending rates could be further lowered and the foreign exchange rate given further flexibility.
