China's central bank governor Zhou Xiaochuan Wednesday reiterated that the country's monetary policy will stay prudent and neutral in 2013.

China aims to keep its broad money supply (M2), which covers cash in circulation and all deposits, to grow at 13 percent this year and targets the inflation rate at 3.5 percent.

The 13 percent growth of M2 is smaller than that of last year, which indicates that the government puts more emphasis on keeping stable consumer prices, Zhou told a press conference on the sidelines of the annual legislative session.

The M2 growth target also means the monetary policy will stay prudent and neutral, he said.

China implemented a relatively easy monetary policy in 2008 to cope with the global financial crisis. At the end of 2010, the monetary policy was turned to prudent with the economy gradually recovering.

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