PBOC asks banks to curb new loans in first quarter

As per Bloomberg report, the People’s Bank of China (PBOC) has asked banks to curb lending in the first quarter and has warned that non-compliance would attract higher costs or less interest rate on reserves kept with the central bank.  

 The growth rate of total outstanding mortgages should also not exceed the fourth quarter rate, the central bank said.

Earlier this week, the central bank unexpectedly increased the interest rates on medium-term loans that it uses to manage liquidity.