'Prudent' monetary policy is goal of China's central bank

China's central bank will maintain a ‘prudent' monetary policy with ample space for maneuvers, a senior official said on Saturday.

Speaking at the China Wealth Forum in Qingdao, Shandong province, Yin Yong, assistant governor of the People's Bank of China, confirmed that prudent is the accurate description for monetary policy and for the objective of the central bank's monetary policy.

Yin said that there is enough room for the central bank to adopt traditional monetary tools and to counteract disturbances.

The room comes from "the medium-to-high speed growth and the inflation rate that maintains within a reasonable range," said Yin.

Last year, China's economy expanded by 6.9 percent year on year and the consumer price index rose 1.4 percent, which is within the government's target of 3 percent.

Yin added the central bank is not adopting quantitative easing policies executed by counterparts in other countries.

In the meantime, China's central bank faces more challenges ahead of uncertainties in the global financial market and amid China's new normal economy, such as lower potential growth and increasing debt sustainability pressures, according to Yin.

"Coordination of monetary and fiscal policies is quite crucial when we aim for achieving more objectives, such as financial stability, full employment, and stable economic growth," Yin added.