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China c. bank to stick to relaxed monetary policy

Published 07/24/2009, 04:17 AM
Updated 07/24/2009, 04:24 AM

BEIJING, July 24 (Reuters) - China will stick "unswervingly" to an appropriately accommodative monetary policy because recovery in the world's third-largest economy is not yet on a solid footing, the central bank said on Friday.

In a statement issued following a meeting of its senior officials to chart policy for the rest of 2009, the People's Bank of China said it would control banks' credit risk and ensure that lending is channelled into the real economy.

Some officials have expressed concern recently that a portion of commercial banks' record lending of 7.37 trillion yuan in the first half of the year may have been funnelled into stocks and property, creating incipient bubbles in both markets.

However, the central bank statement made no mention of inflation. Nor did it touch on the yuan's exchange rate. (Reporting by Zhou Xin, Simon Rabinovitch and Langi Chiang; Writing by Alan Wheatley, Editing by Jacqueline Wong)

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