People's Bank of China Deputy Governor Li Ruogu said on Monday that growth this year in the 7-8 percent range is reasonable and there are no plans for monetary tightening in China.
He also said the yuan will be kept at a sustainable level. A day earlier he said that China has no plan to re-value its currency any time soon.
"We think it is reasonable to have roughly seven percent (economic growth). Depending on policy effectiveness, we can certainly maintain 7-8 pct growth this year," Li told reporters on the sidelines of the Group of 10 meetings of central bankers from top industrialised and emerging markets.
This growth forecast is in line with many economists who expect China's rapid growth of 9.1 percent seen last year to cool as the government eases back on state spending and takes further steps to reduce lending to industries in overheated sectors. "We will watch inflation very closely. We do not have a plan at this point to change interest rates," Li said.
He did not express concern about government spending levels.
"I don't think there will be too much (in the way of budget) deficits. We are always holding a position that a budget deficit cannot be too large," he said.