China to adjust liquidity, keep credit growth steady

Chinese central bank says recent interbank cash crunch had been easing and a temporary jump in short-term interest rates would not hurt the real economy

China's central bank said on Sunday that it would use a mix of policy tools to adjust liquidity and keep credit growth "steady and appropriate".

The People's Bank of China also said that the recent interbank cash crunch had been easing and a temporary jump in short-term interest rates would not hurt the real economy.

The central bank will continue to implement a prudent monetary policy, it added.