Central bank to keep 'relatively loose' monetary policy in 2H

China will continue its relatively loose monetary policy during the second half to maintain the consistency and stability of macro economic policies, state media reported, citing a statement from the People’s Bank of China (PBoC). "We will apply multiple monetary tools to maintain an appropriate growth in money supply, and adjust the credit structure to reduce risks," the PBoC said in a statement following the second quarter meeting of its monetary policy committee. The central bank reiterated that it would improve the renminbi’s exchange rate mechanism and adjust its value against a basket of foreign currencies. It said China’s economy was heading in an expected direction but the country will need to grapple with tough challenges including inflation expectations.