Bank lending is tapering off in China, which will relieve inflationary pressures affecting the economy.

New loans denominated in the yuan totaled 492.6 billion yuan ($76.4 billion) in July, the least monthly increase this year, representing a decrease of 25.2 billion yuan ($3.9 billion) from a year ago, said the People's Bank of China, the central bank.

The broad money supply (M2), which covers cash in circulation and all deposits, increased 14.7 percent year on year to 77.29 trillion yuan ($12 trillion) at the end of July. The growth rate was down from June's 15.9-percent increase and well below the government's target ceiling of 16 percent for the entire year.

"The less-than-expected lending showed the country's efforts to soak up liquidity is bearing fruit," said Lian Ping, chief economist with the Bank of Communications Ltd.

To tame soaring consumer prices, the central bank raised the benchmark interest rates three times this year, and hiked the reserve requirement ratio six times, punching the banks' ability to lend.

Unless the economy significantly weakens or inflation abates, policymakers are less likely to ease their monetary stance, said Peng Wensheng, chief economist with the China International Capital Corp. Ltd.

"The Chinese economy is only moderating, not slumping," said Qu Hongbin, a Hong Kong-based economist with the HSBC. "There is no need to worry about over-tightening or an economic hard landing."

As a result, the country is less likely to alter its monetary tightening stance any time soon, despite ongoing jitters in global financial markets, he said.