China will adjust monetary policy in a timely way: c.bank

China cut the RRR in December , the second time last year, releasing about 500 billion yuan ($72.39 billion) in long-term liquidity to prop up a faltering economy hit by COVID-19. "The PBOC will provide 'forceful' financial support for the stable and healthy development of the economy," Yi said, adding 2023's focus of structural monetary policy will be on green finance, tech innovation, infrastructure and housing.

China's central bank will adjust monetary policy in a timely and appropriate manner, and cutting banks' reserve requirements to release long-term liquidity will still be an effective tool to support the economy, top bank officials said on Friday.

Policymakers are looking to support a nascent recovery in the world's second-largest economy after last year's COVID-induced slump, and recent data shows activity is bouncing back

at a better-than-expected pace. But China still faces challenges including a weak property market and faltering epxorts. Responding to a question on whether the central bank will lower interest rates or cut banks' reserve requirement ratios (RRR) again, People's Bank of China Governor Yi Gang, told a news conference that China's real interest rates are at an appropriate level now.

The PBOC has cut the RRR 14 times since 2018, to less than 8% from the nearly 15%, so it is still "an effective way" to provide long-term liquidity and support the real economy, Yi said. China cut the RRR in

December , the second time last year, releasing about 500 billion yuan ($72.39 billion) in long-term liquidity to prop up a faltering economy hit by COVID-19.

"The PBOC will provide 'forceful' financial support for the stable and healthy development of the economy," Yi said, adding 2023's focus of structural monetary policy will be on green finance, tech innovation, infrastructure and housing. At the same news conference, deputy PBOC governor Pan Gongsheng said bubbles in China's property sector have been curbed as measures to support the industry are gaining traction.

China will push forward with the transformation of the property sector and insist that housing is for living in, not for speculation, Pan said. Liu Guoqiang, another deputy PBOC governor, said China's inflation will be modest in 2023 despite the reacceleration of the economy.

"In the long run, there are still many unpredictable things in the external environment... we will remain vigilant against inflation risks," Liu said. ($1 = 6.9066 Chinese yuan renminbi)