Sufficient liquidity for economy: China

BUSINESS ROUNDUP

China's central bank said it will ensure sufficient liquidity to sustain economic growth, damping speculation regulators may seek to restrain credit after new loans jumped sixfold to a record in March.

The People's Bank of China will maintain "continuity and stability in monetary policy", the central bank said in a statement on its Web site today. It reiterated a "moderately loose" monetary policy.

The statement indicates that reviving growth remains China's priority, even as the surge in lending fans concern of bad debts and asset bubbles. China's performance was better than expected in the first quarter after a 4-trillion-yuan ($887-billion) stimulus package was implemented, Premier Wen Jiabao said yesterday.

"The central bank had to ensure it did enough to reflate the economy," said Kevin Lai, economist with Daiwa Institute of Research in Hong Kong, before the statement. "The question now is whether it has done more than is needed."

- Bloomberg

From TODAY, Business – Monday, 13-April-2009