China reiterates prudent monetary policy

China's central bank on Friday reiterated that the country will continue to implement a prudent monetary policy. China will closely monitor international capital flows and try to maintain a balanced relationship between stabilizing economic growth, adjusting economic structure, curbing inflation and preventing risks, according to a statement posted on the website of the People's Bank of China. "The central bank will employ various monetary policy tools to guide stable and appropriate growth in credit and money supply and maintain the reasonable scale of social financing aggregate," the statement said. Growth in the world's second-largest economy slowed for a seventh quarter, rising 7.4 percent year on year during the July-September period. The nation will move ahead with interest rate reforms and improve the exchange rate formation mechanism for the yuan while maintaining the basic stability of the currency, the statement said. The central bank also vowed to enhance the role of finance in supporting the real economy and urged banks to beef up services to better satisfy the diverse demands for investment and financing, according to the statement.