Bank Lending & Broad Credit (Jul.)

Bank loan growth slowed for the 16th consecutive month in July, hitting yet another record low of 5.1% y/y, down from 5.2% in June. Household demand remained particularly weak, with household loan growth contracting for the fifth month in a row. And corporate borrowing slowed from 8.4% y/y in June to 8.3% in July. This weakness in loan demand comes despite the fact that nominal bank lending rates have continued to edge down. The recent uptick in inflation means that, in real terms, bank lending rates have fallen sharply this year.