Central bank in a monetary dilemma

BEIJING - China will continue its prudent monetary policy, flexibly use monetary instruments and maintain "moderate" liquidity to achieve reasonable growth in loans and social financing, the central bank said on Sunday.

After its monetary policy committee concluded its quarterly meeting.the People's Bank of China (PBOC) said it will closely watch new developments in the domestic and international economy and finance as well as changes in international capital flows.

The Chinese economy is running within a "proper range" with prices remaining stable, but the world's second-largest economy is still faced with complicated situations, meeting participants said.