China to maintain 'prudent' monetary policy

Updated: 2012-06-29 18:01

By Wang Xiaotian (

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China will maintain its "prudent" monetary policy and "appropriately" fine-tune policies to deal with the economic situation, People's Bank of China Governor Zhou Xiaochuan said on Friday.

He said the country will also strengthen the reform of its financial markets, interest rates, the renminbi exchange rate, and renminbi cross-border transactions.

"And we need to fend off systemic risks, and well respond to the global financial crisis and sovereign debt crisis," he said.

Zhou made the remarks at the Lujiazui Forum held in Shanghai.

The People's Bank of China cut interest rates for the first time since 2008 earlier this month, and lowered reserve requirements for banks on three occasions since the fourth quarter of last year.

Growth of the world's second-largest economy slowed to 8.1 percent in the first quarter of this year, the lowest in nearly three years. Analysts forecast the GDP growth rate will further moderate to somewhere around 7 percent in the second quarter.