Monetary policy still set on 'prudent' track

Official says PBOC is offsetting high real corporate debt costs, not easing

China will maintain a prudent monetary policy and use various measures to increase money supply, a central bank official said on Thursday.

"We have not changed our prudent monetary policy. The latest round of benchmark interest rate cuts aims at alleviating financing difficulties for small businesses, which should not be interpreted as a loosening of monetary policy," said Hu Xiaolian, deputy governor of the People's Bank of China, at the Caijing Annual Conference 2015 in Beijing.