Photographer: Wang Zhao/AFP via Getty Images

PBOC Says Don’t Look at Short Term After Money Supply Slumps

  • July credit growth was a distortion, China’s central bank says
  • Growing gap between M1 and M2 doesn’t suggest ‘liquidity trap’

China’s central bank urged investors not to focus too much on short-term concerns and said the diverging pace of credit expansion doesn’t mean monetary policy is losing steam.

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