China's new bank loans, money supply growth accelerate

China’s outstanding bank loans grew by 14%, or RMB900.8 billion (US$145.15 billion) in May as the country’s broadest measure of money supply, M2, also rose 10.8% over the same period a year earlier, Reuters reported, citing a statement from the People’s Bank of China. Analysts had been waiting to see if the May money supply figures would show any sign of rebounding after last month’s figure showed M2 year-on-year growth at a record low. Many economists had expected the central bank’s easing measures – including three interest rate cuts since November – to show up sooner in China’s money and inflation data.