China Reaffirms Yuan Stance, Loose Monetary Policy

BEIJING, July 9 -- China will maintain an appropriately loose monetary policy but will use its various monetary policy tools flexibly, the central bank said on Thursday.

The People's Bank of China, echoing its statement of June 19 when it ended the yuan's 23-month-old peg to the dollar, said it would improve the currency's exchange rate mechanism and adjust its value with reference to a basket of foreign currencies.

In a summary of its second-quarter monetary report, released on the PBOC's website, the central bank said the world's third-largest economy was headed in the direction it expected.