Any further rise in Chinese interest rates will depend on economic developments but big changes in policy are unlikely, deputy central bank governor Wu Xiaoling said on Saturday.
"We will have to look at the situation as it actually is," she told reporters after a financial forum when asked whether another increase in borrowing costs was likely. The People's Bank of China (PBOC) has raised interest rates and bank reserve requirements twice since late April to slow a credit-fuelled capital spending boom.
The government has also weighed in with an array of administrative controls, including tighter land-use and environmental regulations, to deter local authorities from launching wasteful new investments.
Figures released on Friday suggested the tightening is working. Annual growth in the broad M2 measure of money supply slowed in September to 16.8 percent, the slowest pace since July 2005, from 17.9 percent in August. Annual loan growth also slowed, to 15.2 percent in September from 16.1 percent in August.
"The macroeconomic controls have showed expected results and, under these circumstances, I think all of our policies will be consistent and stable," Wu said.
PBOC assistant governor Yi Gang also emphasised the need for monetary and fiscal policies to be consistent and said the central bank could not afford to drop its guard.
Investment and credit growth remained brisk and China's large trade surplus had left the banking system awash with cash. "There's excess liquidity in the market and the central bank will step up its efforts to manage this liquidity," Yi told the forum.
Reflecting Beijing's growing preoccupation with green issues, Yi noted that China's environment and natural resources were coming under serious strain because of sustained 10 percent-plus growth.
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