PBOC to watch property sector

The central bank says it will try to manage expectations of inflation this year, and pay close attention to movements in the property sector.

The People's Bank of China has laid out its objective for 2010. These include maintaining ample credit in the financial system, encouraging more balance in bank lending, while keeping a close watch on credit policies in the housing market. About a sixth of the close to 10 trillion yuan in new loans last year flowed into the property sector.

The government is expected to trim new lending to 7 to 8 trillion yuan this year. The central bank also maintained it will stick to a loose monetary policy, but stressed it was ready to tweak and fine-tune according to developments in the economy.