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Central bank adheres to moderately easy monetary policy

(Xinhua)
Updated: 2009-07-30 09:26

China would firmly stick to its moderately easy monetary policy and concrete the recovery momentum of the country's economy, said vice governor of China's central bank on Wednesday.

Related readings:  PBOC rules out monetary policy change  PBOC sticks to monetary goals  PBOC: 'Moderately loose' monetary policy to continue

Su Ning, Vice Governor of the People's Bank of China (PBOC) made the remarks in a meeting held in the bank's Shanghai-based headquarter, saying a proactive fiscal policy and moderately easy monetary policy were crucial for sustained growth.

Despite an initial economy recovery resulted from the government's stimulus efforts in the first half, the country still faced severe difficulties and challenges from both domestic and abroad.

In the second half, the PBOC would use a set of monetary policy mix to coordinate a "reasonable" credit structure based on market rules, and to ensure more loans to major infrastructure construction and technology innovation, Said Su.

China's economy rebounded to grow 7.9 percent in the second quarter driven by a surge of fixed-asset investment backed by government's 4-trillion-yuan ($586 billion) stimulus package on last September.

Chinese banks lent a record 7.37 trillion yuan in the first half to shore up the economy, which sank to 6.1 percent in the first quarter.