China will maintain a prudent monetary policy and has no intention to ease or tighten the latter, said Liu Guoqiang, deputy governor of the People’s Bank of China.

The central bank earlier injected 267 billion yuan via the medium-term lending facility (MLF) tool to some commercial banks and conducted a 160 billion yuan reverse repo, triggering market speculation that it may be changing its policy.

In response to such speculation, Liu said the open market actions were only meant to adjust short-term liquidity, rather than a shift in policy.

Liu noted that the economy had a good start in the first quarter, however downward pressure still exists, especially for the physical economy which has to deal with rising costs. The government will continue its efforts to further decrease small and micro enterprises’ financing costs, he said.

In addition, Sun Guofeng, director of the PBOC’s monetary policy department, said, as the overall financial market still faces major uncertainties, a prudent monetary policy would also need small adjustments depending on economic growth data and changes in price data.

The government will maintain a balance in the reasonable growth of credit, optimizing credit structure and the prevention of financial risks.