Central bank: Monetary policy has wiggle room

China's "prudent" monetary policy stance has not changed and even has room to lower interest rates and increase liquidity, depending on the domestic economic outlook, Yi Gang, governor of the central bank, said on Sunday.

The target this year is to maintain a monetary policy that is neither too tight nor too loose, and to keep the broad money supply and aggregate financing growth consistent with nominal GDP growth, Yi said at a news conference at the ongoing session of the 13th National People's Congress.

China's M2, a broad measure of the money supply that covers cash in circulation and all deposits, rose 8 percent from a year earlier to 186.74 trillion yuan ($27.8 trillion) at the end of February, the People's Bank of China reported a few minutes before the news conference. The growth pace slowed from January's 8.4 percent.