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China Seen Taking Steps to Aid Growth After Credit Plunge

China’s plunge in credit expansion last month and unexpected slowdown in investment spending flashed warnings on growth that investors and economists bet will spur policy makers to expand stimulus.

Barclays Plc is forecasting two second-half interest-rate cuts, while Australia & New Zealand Banking Group Ltd. said a reduction in banks’ reserve requirements is imminent. China will keep “reasonable and appropriate” growth in money supply and credit while maintaining a “prudent” monetary policy stance, the State Council said in a statement published today.