PBOC: China needs to prevent inflation rebound

 

China is welcoming private investment, but it's still exercising caution when it comes giving out loans, that is, monetary policy. The nation's central bank has pledged to maintain its current "prudent" stance, but also to fine-tune policy when appropriate.

The People's Bank of China said in its fourth-quarter monetary policy implementation report that it still needs to prevent a rebound in consumer inflation, which faces upward pressures from loose global liquidity and commodity prices.

The central bank said it would flexibly use interest rates to adjust the demand for capital.

The PBOC expects the broad M2 measure of money supply to grow 14 percent this year.