China to stick with pro-growth policies

BEIJING, Nov 5 - Chinese officials on Thursday reaffirmed the country's pro-growth policy stance even though the economic recovery is gathering steam.

Guo Qingping, an assistant governor of the People's Bank of China, told a financial forum that the central bank would stick to its "appropriately relaxed" monetary policy stance and ensure an appropriate amount of liquidity in the banking system.

Guo's comments came a day after the Federal Reserve said it would keep borrowing costs near zero for "an extended period" even as it expressed growing confidence that the U.S. economy was regaining strength.

Yao Jingyuan, the chief economist of the National Bureau of Statistics, told the Economic Information Daily that China must maintain "consistency and stability" in its macro-economic policies, at least for now.

"China's economy is like a car halfway up a hill. You can't take your foot off the accelerator at the moment," Yao was quoted as saying by the Beijing paper.

But he added that China did not need a second stimulus package as economic growth this year would reach at least 8 percent -- the totemic target set by the government.

Guo from the PBOC said there were more and more positive economic signs. "The momentum of stabilisation and improvement has become more clear-cut," Guo said.

Looking ahead, Yuan Gangming, a researcher with the Chinese Academy of Social Sciences, told the official Xinhua news agency that China might need to raise interest rates in the second half of next year if consumer inflation exceeds 3 percent. (Reporting by Aileen Wang and Jason Subler; Editing by Alan Wheatley)