BEIJING, Sept 13 Reuters China39;s central bank will boost demand and support a modest rebound in prices, the Financial News, a publication run by the People39;s Bank of China PBOC said on Wednesday, citing a unnamed senior central bank official.

The PBOC will ramp up its coordination with fiscal and industrial policies and strengthen the guidance of expectations, while closely monitoring the effects of financial policies, the official was quoted as saying.

The central bank will create an appropriate monetary and financial environment to promote effective demand in the real economy, support a moderate recovery in prices and enhance economic vitality, the official said.

China39;s firm credit growth was also in line with the recovery, as borrowing costs in the real economy fell, the official was quoted as saying.

New bank loans beat expectations by nearly quadrupling in August from July, as the central bank sought to shore up economic growth amid soft demand at home and abroad.

China has in recent weeks rolled out a series of measures, including interest rate cuts and property easing steps, to support the economy, which has struggled after its postpandemic recovery faltered.

We cannot rule out a RRR cut and the use of structural tools to guide financial institutions to increase support for the real economy and promote a faster recovery of domestic demand, said Zhou Maohua, analyst at China Everbright Bank.

The central bank last cut the reserve requirement ratio RRR…