China's money supply and credit growth maintained their steady trends in May, staying on the track designed by the central bank to cater to the need of the country's robust economic growth.

Growth of broad money supply M2, which covers cash in circulation and all deposits, quickened slightly to 14.6 percent in May over 14.1 percent in April, while total loan growth softened to 12.4 percent from 12.5 percent in April.

Outstanding Renminbi-denominated loans stood at 18.63 trillion yuan (2.25 trillion US dollars) by last month-end, up 12.4 percent year on year.

"In April, the financial industry ran in a healthy and smooth manner," the People's Bank of China (PBoC ), or the central bank, acknowledged in a written statement.

The bank has set a "prudent" monetary policy for 2005, targeting a 15 percent money supply growth for the entire year -- in response to central government efforts to rein in overheated industries and cool the economy.

May household savings deposits added 75 billion yuan (about 9.1 billion dollars) - 31.6 billion yuan (some 3.8 billion dollars) more than a year earlier, indicating people are more ready to put money back into the bank following an interest rate hike last year.

Interbank interest rates continued on a downward trend last month amid ample banking liquidity.

The yuan ended at 8.2765 against the greenback at the end of May, keeping stable despite international calls for appreciation.

Some developed nations, especially the United States, are intensifying the pressure on China, requiring it to appreciate its local currency, the Renminbi. They argue that an artificially low yuan gives China an unfair trade advantage and contributes to job losses in their own countries.

But senior Chinese officials and central bankers have said repeatedly that their country would keep the yuan basically stable at a rational equilibrium while going on to monitor the yuan determination regime.

Source: Xinhua