China's Cash Squeeze - Bloomberg, 24Jun13

Full video here http://www.bloomberg.com/video/china-...


June 24 -- China may adjust monetary policy as needed while seeking more efficient use of the nation's financial resources as a cash squeeze in the banking system risks exacerbating an economic slowdown. Angie Lau reports on Bloomberg Television's "On The Move Asia." (Source: Bloomberg)




"China's central bank said it may adjust monetary policy as needed, suggesting officials are more open to loosening policies as a cash squeeze risks exacerbating an economic slowdown.

The People's Bank of China said the nation should "appropriately fine-tune" its policies, according to a statement yesterday that summarized the monetary policy committee's second-quarter meeting in Beijing. It was the first time since September that the panel, led by Governor Zhou Xiaochuan, has used the "fine-tune" phrase.

The comments were released following an easing of the cash crunch on June 21 after a gauge of interbank funding availability rose to the highest since at least 2003. Slowing growth in the world's second-largest economy, a crackdown on illegal capital inflows and efforts to rein in shadow banking have contributed to increased borrowing costs."


http://www.bloomberg.com/news/2013-06...