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Chart – China: monetary conditions index

⚠️Automatic translation pending review by an economist.

The monetary conditions index in China assesses:
– the effect of monetary conditions on domestic demand through the real one-year interest rate (60% of the index) and loan growth (25% of the index)
– the effect of monetary conditions on external demand through the real effective exchange rate (15% of the index).
The index, based on 2007, has thus reached its highest level since January 2012, indicating monetary conditions favorable to credit growth.

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