China's central bank sees uncertainty in inflation

BEIJING - China's central bank has warned of uncertainty in future inflation levels while saying the country has maintained steady economic growth, according to a People's Bank of China (PBOC) statement on Wednesday.

In its regular quarterly meeting for January-March, the Monetary Policy Committee of the PBOC has reiterated a stable macro monetary environment to follow the prudent monetary policy, keep policy continuity and stability while making it more forward-looking, targeted and flexible, according to the statement.

The monetary policy should make a balance between ensuring steady and robust economic development, adjusting the economic structure, and managing inflation expectations, said the statement.

Due to rising food prices during the Spring Festival season, China's annual consumer inflation rate rebounded to a 10-month high of 3.2 percent in February, according to data from the National Bureau of Statistics.

The PBOC statement also vowed to further liberalize interest rates and facilitate reform of the renminbi exchange rate formation regime to keep the yuan basically stable at "reasonable and equilibrium level."

The PBOC did not specify when the meeting was held but said six councilors of the 15-member committee were absent due to other official duties.

The committee, headed by PBOC governor Zhou Xiaochuan, said the global economy is recovering a little bit but still faces "complicated" situations.

The committee stressed close monitoring of the latest developments in international and domestic economy and financial markets, as well as changes in the flow of global capital.

The committee said the management over liquidity must be strengthened to encourage a steady and appropriate growth in credit and social financing and optimize the allocation of financial resources.

The structural problems of the supply-and-demand of credit need to be solved to guard against financial risks and make easier access of financial services for the physical economy.