Residential construction is running at very high levels, households are adding a little less of their incomes to savings and savers have been searching for higher returns. These are all indications of easy money at work. Cognisant of the risk that very low interest rates may foster a worrying debt build-up, regulatory initiatives are in place to maintain sound lending standards and capital adequacy.
Under the leadership of the central government, the PBC strengthened control over the total supply of money and credit, stepped up efforts to rectify financial governance, and managed to effectively curb fast growing investment and soaring prices in a relatively short time.