China's PBOC flags stimulus restraint but says policy should be flexible

By Xiaoyi Shao and Kevin Yao BEIJING (Reuters) - China's central bank won't resort to excessive stimulus to bolster growth but will keep a flexible stance in the event of an economic shock - domestic or global, Governor Zhou Xiaochuan said while reiterating the authority's prudent monetary policy. Under the banner of prudent policy, the Chinese central bank has cut interest rates six times since November 2014 and has also reduced the amount of cash that commercial lenders must hold as reserves.