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Jan 22, 2010, 01.23 PM IST | Source: Reuters

China central bank reaffirms loose money policy

China will stick to its moderately loose monetary policy, People's Bank of China Governor Zhou Xiaochuan said in comments broadcast on Friday.

China central bank reaffirms loose money policy
China will stick to its moderately loose monetary policy, People's Bank of China Governor Zhou Xiaochuan said in comments broadcast on Friday.

Zhou made the comments soon after China on Thursday reported stronger-than-expected 10.7% year-on-year gross domestic product growth for the last quarter of 2009.

"In 2010, the central bank will continue to adopt a relatively loose monetary policy to maintain stability and consistency," China Central Television quoted Zhou as saying.

"The stress will focus on flexibility and efficiency to support economic growth and control inflationary expectations. Meanwhile credit policy will make sure it goes to key sectors of the economy," Zhou was quoted as saying on CCTV's website

The absence of a reference to the PBOC's stock phrase "moderately loose monetary policy" in Thursday's GDP statement issued by the National Bureau of Statistics sparked speculation that the central bank was shifting its policy.

Zhou said Beijing would keep policy stable while implementing it more flexibly.

The central bank chief was speaking at a meeting organised by the Beijing municipal government, according to CCTV.

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