People’s Bank of China’s Zhou signals policy shift with tighter credit controls

China’s central bank head, Gov. Zhou Xiaochuan, on Friday indicated there’s a slight shift there away from the largely expansionary monetary policy that’s been in place for the last few years

With the economy healthier, the bank is moving to support government efforts to cut off overly generous credit and lower financial risks, he said at an annual news conference, according to the Wall Street Journal.

“Too much credit in the economy could trigger inflation and asset-price bubbles,” Zhou said at the briefing, according to the paper. Instead, shifting policy toward neutral should encourage companies to limit debt-based expansion.

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