China's central bank yesterday warned that macro-economic controls remain at a crucial stage amid government efforts to cool the roaring economy, with inflation set to expand in the third quarter.
The central bank said it would also stick to indirect measures to reasonably control money supply.
At the same time it wants to maintain flexibility to adjust its open market operations in the second half to ensure stability of interest rates in the interbank market.
It said commercial banks should grant more loans to industries in need such as coal, electricity, oil, transportation, agriculture, high-technology and equipment manufacture, as well as good small- and medium-sized enterprises (SMEs).
The central bank also pledged to support commercial banks when it comes to setting their own interest rates, currently set by Beijing.
