PBOC vows more steps to boost market expectations

Prudent monetary policy stance to keep growth on sound footing

Chinese monetary authorities said on Tuesday that they are aware of the rising prices and vowed to maintain a "prudent" monetary policy stance so as to keep market expectations at a rational level.

The central bank has to maintain a balance between supporting economic growth and preventing fast price increases, they said. "China has no foundation of sustainable inflation or deflation, but we need to watch out for the change in expectations," said Sun Guofeng, head of the Monetary Policy Department of the People's Bank of China.