Central bank in a monetary dilemma

Expanding credit and rapidly cooling economy pose challenge to tactical approach to debt risks

China's fast expanding credit and the rapidly cooling economy have put the central bank in a dilemma over whether to ease its monetary stance to boost growth.

The government has shown great determination this year to control credit risks while allowing defaults in the bond market. Both industrial investment and fixed-asset investment slowed to multi-year lows in the first two months and dragged down economic growth.