PBoC to maintain loose monetary policy

In its quarterly monetary policy report posted on its website Wednesday, the People’s Bank of China (PBoC) said it will ensure an “ample” supply of money, Bloomberg reported. While the central bank said the Chinese economy has performed better than originally expected, it still does not believe the recovery is on firm footing; the bank noted that while new lending has surged, the lending is over-concentrated on government projects and does not provide enough to smaller businesses. It advised lenders to pay attention to bad loans and assess the ability of local governments to repay debt. The bank also said that deflationary pressure is easing and that quarterly GDP growth is improving, without providing figures.