Home | China | World | Business Central Bank: No Relaxation of Monetary Policy THU, FEB 28, 2002     The People's Bank of China Wednesday claimed that it would continue to pursue its three-year-old "prudent monetary policy" rather than relax spending, Thursday's China Daily reported. In an article published on the central bank's website, the bank stressed that a relaxed monetary policy is not the right cure for China's economic slowdown and that China's economic problems mainly are structural ones rather than insufficient money supply. The People's Bank of China last week slashed interest rate of Renminbi for the first time since June 1999. The rate cut triggered speculation that the central bank might have decided to abandon its prudent monetary policy. The central bank implicitly rebutted such speculation. However, the interest rate cut did represent an acknowledgment by China's senior policy makers that the environment for national economic growth is not favorable and steps need to be taken to keep the country's economy on a fast track, the paper cited experts as saying. Editor:Zhong Source:Xinhua Recommend to your friend email:    China Central Television,All Rights Reserved