(17 April 2012 – China) A record US$160 billion (A$154.9 billion) was lent by Chinese banks in March in a bid to boost their faltering market.The amount is the biggest spike in credit since January 2011 when new loans hit US$159 billion. This growth in lending also produced a stronger than expected increase in money supply, decreasing the likelihood of an interest rate cut. Economists had expected the banks to loan US$127 billion in March.
The jump in March lending boosted the overall lending for the first quarter to US$390 billion, exceeding the target by US$10 billion and well above the US$349 billion posted in the same period last year.