There was a seasonal pick-up in new lending last month but underlying growth in broad credit continued to slow and is now at its lowest rate in over a decade. Our China Activity Proxy suggests that this pullback in lending has already started to weigh on economic growth, with further declines still to come. Furthermore, there are signs that the PBOC is now reversing course on monetary policy in response.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services