Central bank to continue prudent monetary policy

BEIJING - China's central bank on Friday reiterated that it will continue to pursue a prudent monetary policy and make price stability a priority.

The rhythm and force of the monetary policy must be handled carefully, the People's Bank of China said in a statement.

"China's economy is growing in a stable and rapid manner," said the statement. "Inflationary pressure has eased somewhat but still runs at a high level."

It reaffirmed that the exchange rate of the Chinese currency must be kept "basically stable at a reasonable and balanced level."

China's consumer price index, a main gauge of inflation, surged by a 37-month high of 6.5 percent in July before cooling to 6.2 percent in August, still among the highest levels in the past three years.

To curb its soaring inflation, the central bank has raised the benchmark interest rate three times this year and increased the reserve requirement ratio six times.