PBoC Reiterates M2 Growth Will Slow
iFeng: 央行：需全面客观认识当前 M2 增速低于过往
The central bank said that the current M2 growth rate lower than in the past, the need for comprehensive and objective understanding. First, the growth rate of M2 in the past is higher than the nominal GDP growth more closely related to housing and other monetization, and the current housing commercialization rate has been high, the corresponding increase in demand for money. Second, in recent years, the rapid growth of M2 is also related to financial deepening, mainly for the same industry, financial and other business development faster, but the financial deepening process is not linear, in order to benefit from the disadvantages will have a certain ups and downs, the recent M2 growth Reduce is to strengthen financial regulation, shorten the chain of funds, reduce the nest of a reasonable reflection. It is expected that with the deepening of leverage and the further return of finance to the real economy, the M2 growth rate lower than in the past may become a new norm. At the same time, with the deepening of the market and financial innovation, the factors influencing the money supply are more complicated. The measurability, controllability and economic relevance of M2 are also declining, and the change can not be overly concerned.