Monetary policy to stick despite fall in October loans

Chinese banks issued RMB505 billion (US$81.06 billion) in renminbi-denominated loans in October, down 13.9% year-on-year and the lowest figure in 13 months, South China Morning Post reported, quoting a statement made by the People’s Bank of China on its website. The loan total missed the US$94.67 billion estimate of 28 analysts surveyed by Bloomberg. Aggregate financing, which includes trust loans and bond and stock issuance, rose 63% annually to US$207.0 billion (RMB1.29 trillion) in October, the central bank said. Analysts said the central bank was unlikely to ease monetary policy any further this year, despite  the lower loan total. The loan figure does not accurately reflect the credit environment, since off-balance sheet loans have no effect on figures, said Wang Tao, an economist with UBS Securities.