BEIJING (Reuters – China’s new bank lending declined more than anticipated in December compared with the month before, however, the total year 2021 lending was a new record as the central banks maintained support policy to slow down the economy.

Chinese banks granted 1.13 trillion dollars ($177.56 trillion) in new loans to yuanborrowers in December. That’s down from 1.27 trillion in November, and well below analysts’ expectations. Data released Wednesday by People’s Bank of China.

Reuters analysts polled predicted that December would see new yuan-loan amounts fall to 1.25 Trillion Yuan. This was lower than the 1.27 trillion Yuan that had been reported a year ago.

The record for new bank loans was 19.95 trillionyuan. This is 1.6% higher than the record 19.63 trillionyuan achieved in 2020. It’s equivalent to greater than the gross domestic products of the United Kingdom.

China’s economy started strong in 2021, as it rebounded from the pandemic-induced slump of last year. However, its momentum has slowed in recent months because of a downturn in property markets, restrictions on industrial pollution, and COVID-19 curbs that have impacted consumer spending and confidence.

In order to boost growth the central bank cut banks’ reserve requirements ratios (RRR) on December 15, 2021. The second such move of the year in 2021.

To support small businesses and the rural sector, the central bank reduced the rate on its relending facility by 25%.

Analysts expect more cuts to the RRR in 2018, with others also anticipating cuts in policy rate if economic activity slows down. At the moment, China does not expect any more drastic rate cuts, but this is despite the fact that the U.S. Federal Reserve may soon begin raising rates, which could result in capital outflows from other emerging markets.

Expect the property market to remain down for the second half of 2011. The recent spread of Omicron, a highly contagious variant of Omicron, poses a new challenge.

China will maintain its proactive fiscal and prudent monetary policies in 2022. The Politburo, China’s highest-ranking decision making body, stated that it will maintain economic operations in a manageable range through 2022.

“Debt to GDP was aggressively reduced by 10% points in 2021, but with growth decelerating to below policymakers’ comfort

Analysts at Morgan Stanley (NYSE: ) stated earlier in the week.

According to central bank data, the M2 broad money supply grew 9.0% in November compared with a previous year. This is above the 8.7% estimate by Reuters. From a year earlier, M2 increased 8.5% in November.

The outstanding yuan loan portfolio grew by 11.6% in December compared to 11.7% in November. Analysts were expecting 11.7% growth.

The growth of outstanding total financial financing (TSF), which is a large measure of credit and liquidity, accelerated to 10.3% in December, compared with 10.1% in November.

TSF covers off-balance sheet financing forms that aren’t available in the standard bank lending process, like initial public offerings and loans from trust corporations.

TSF declined to 2.37 Trillion yuan, down from 2.61 Trillion yuan November. Reuters analysts polled had predicted December TSF to reach 2.45 trillion yuan.

($1 = 6.3641 renminbi)