BEIJING, Aug. 2 (Xinhua) -- China is widely expected to loosen its monetary supply further to shore up its slowing economy after central authorities pledged to "keep credit growing at a stable and moderate pace."
The statement was made Tuesday by the Political Bureau of the Communist Party of China (CPC) Central Committee, China's most powerful decision-making body.
Although China's top leaders agreed to adhere to a prudent monetary policy, stable and moderate credit growth could mean stronger fine-tuning, analysts have said.
Dwindling orders from Europe and other trade partners have sapped China's exports and, combined with a cooling property sector, slowed the country's economic growth rate to 7.6 percent in the second quarter, the lowest level since the first quarter of 2009.
Central authorities may intensify credit offers to cash-strapped businesses, said Guo Tianyong, a professor at the Central University of Finance and Economics.
To cope with the faster-than-expected slowdown, China's central bank has cut its lending and deposit rates twice and lowered the amount of funds banks must keep in reserve.
The China International Capital Corporation said in a report that the central bank is expected to further lower interest rates and the reserve requirement ratio amid weakening demand and easing inflation.
The second quarter meeting of the central bank's monetary policy committee also stressed making the policy more targeted, flexible and forward-looking, and to implement multiple policy tools to make credit growth stable and moderate.
Last month, China's new yuan-denominated loans rose by 285.9 billion yuan (about 45 billion U.S. dollars) year on year to 919.8 billion yuan, hitting a three-month high after reaching 1.01 trillion yuan in March.
Preliminary data showed that the country's social financing, a measure of funds raised by entities in the real economy, totaled 7.78 trillion yuan in the first six months, 13.5 billion yuan more than that of the same period last year.