China's monetary policy may change in H2

Updated: 2011-08-11 17:18

By Qiang Xiaoji (chinadaily.com.cn)

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China will maintain a prudent monetary policy in the second half of the year, according to information released from internal conferences of financial regulators, China Securities Journal reported Thursday.

As inflation may soon hit a peak, China is considering adjusting to a "directional loose" monetary policy by relaxing restrictions on financing, especially in the sectors of agriculture, small and medium-sized enterprises and affordable housing, the report said.

Analysts said keeping an "overall tightening" policy will curb the rising of prices and a "directional loose" policy will avoid the lag effect of monetary policies, according to the report.