The growth rate of our M3 broad money measure slowed to a three-and-a-half year low of 4.1% in December, but the slightly narrower M2 measure increased by a solid 6.0% last year, while bank loans expanded by a very robust 8.4%. Since the slowdown in M3 growth is largely due to the impact of lower commodity prices on dollar deposits held abroad, however, it should not be interpreted as a signal that the domestic economy is weakening, particularly not when bank loan growth is still unusually strong.
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