While a pick-up in banking lending growth in December suggests a slightly more accommodative policy stance, we think stronger growth in other forms of credit reflects a weak base for comparison due to a cash crunch in December 2013 rather than a loosening of broader credit conditions. Meanwhile, the fall in FX reserves reflects currency fluctuations rather than sales by the People's Bank.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.