China will maintain a prudent monetary policy and curb excessive liquidity, the first quarter monetary policy report released by the People's Bank of China said in Beijing on Thursday.

China will use multi-tools to manage excessive liquidity to create a stable monetary and financial environment, the report said.

The growth rate of money and credit supplies slowed down in the first quarter of 2007 but still stood too high, the report said.

THe broad money supply (M2) grew by 17.3 percent year on year at the end of this March. Its growth rate declined by 1.5 percentage points year on year while 0.4 percentage points higher than that at the end of 2006.

Meanwhile, the narrow money supply (M1) grew by 19.8 percent year on year at the end of this March, according to the report.

Source: Xinhua