PBOC’s $162 Billion Loan Spurs Speculation on Easing

A Chinese central bank loan that’s almost the size of the U.S. bailout of American International Group Inc. has spurred speculation that policy makers have adopted a new form of monetary easing to shore up growth.

While the People’s Bank of China warns debt is rising quickly, and credit expansion is already high, that didn’t stop it from extending what Chinese media reported is a 1 trillion yuan ($162 billion), three-year loan to a state development bank. By comparison, the AIG rescue amounted to $182 billion.