China to continue "moderately loose monetary policy" to sustain growth

China' central bank has said that it would continue to maintain a "moderately loose monetary policy to support economic growth", after the monetary policy committee meeting of the Bank of China (PBOC ).

China had moved quickly  to ease controls from its previously tight monetary policy in early 2008 when the likely impact of  the global financial crisis became evident.

The committee said in a statement on the PBOC website that the loosening had led to positive results in the economic situation, though the foundation of a recovery was not stable and many uncertainties remained.

The bank had also assured of "ample" liquidity in the financial system to sustain economic recovery. (See: China central bank assures "ample" liquidity to sustain economic recovery)

China's gross domestic product (GDP) dropped to 6.1 per cent in the first quarter of 2009 as against 6.8 per cent growth in the last quarter of 2008 compared to a 9 per cent growth in 2008. (See: China's first quarter GDP at 10-year low)

China's economy is estimated to grow at 8 per cent in the second quarter this year, according to website statement of the National Bureau of Statistics.