China’s broadest measure of new credit rose less than economists forecast in April, underscoring the case for monetary policy easing in the world’s second-largest economy.
Aggregate financing, which includes bank loans and off-balance credit, was 1.05 trillion yuan ($169 billion), central bank data showed Wednesday, less than the median estimate of 1.2 trillion yuan in a Bloomberg survey of 22 economists. New yuan loans were 707.9 billion yuan, compared with an estimate of 903 billion yuan, while M2 money supply rose 10.1 percent from a year earlier.
Weaker-than-expected credit growth makes it harder for the Chinese government to halt an economic slowdown. The People’s Bank of China announced its third interest rate cut in the last six months on Sunday to tackle downward pressure on the economy.
— With assistance by Xin Zhou