“With prudent monetary policy and other supportive macro measures, China is able to improve efficiency, domestic demand and innovation to achieve such [economic growth] goals. It is unnecessary to take extra ­measures.”

Zhou made his comments at a press briefing on the sidelines of the National People’s Congress in Beijing. He said, however, government policy would adapt if circumstances changed radically.

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“If there are any big accidents at home or abroad, monetary policy will be flexible to counter various shocks,” he said. China’s monetary policy has five modes, said Zhou: tighten, moderately tighten, prudent, appropriately loosen, and loose. Policy would remain in prudent mode, he said.

The government has set a growth target of 6.5 per cent to 7 per cent this year after the economy grew at its slowest rate in a quarter of a century in 2015.

Zhou also ruled out devaluing the yuan’s exchange rate as a tool to make Chinese exports cheaper.

He said the trend was “back to normal, back to reason and back to fundamentals” in the yuan exchange rate as fear and turbulence gradually died down in currency markets. Uncertainties about China’s slowing economy and a stock market rout last year had contributed to the yuan’s volatility, he said.

Widely varying central bank policies overseas, namely rate increases at the US Federal Reserve and intensified monetary easing in Japan and Europe, had also helped make market sentiment fragile, he added.

China’s economic fundamentals were sound, however, and they would again take control of narrative, he said.

“Since China can maintain 6.5 to 7 per cent growth … under such circumstances, China’s capital flows will quickly return to relatively calm and normal levels,” he said. “There’s always no need to rush to buy US dollars.”

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“I dare not say there won’t be any bombshell in the future, but under such circumstances, our capital movement will quickly tend to be at relatively stable and normal levels,” said Zhou.

Markets around the world are keenly focused on China amid concerns about its slowing growth, volatile trading on its stocks markets, the recent weakness of the yuan and the flow of capital out of the country.

China’s economy has seen signs of stabilising in recent weeks with the yuan’s exchange rate steadying and stock market volatility easing. The level of foreign exchange reserves also declined at a much slower pace in February after serious falls in January and December.

Bank loans on the mainland also fell last month after a surge in lending the previous month after the central bank told banks to exercise tighter control.

But doubts over China’s future growth remain. Figures released yesterday showed industrial production and retail sales slowed in the first two months of the year.

China’s industrial output rose 5.4 per cent in the first two months, while fixed-asset investment and retail sales both rose 10.2 per cent, according to the National Bureau of Statistics.

Moody’s, the rating agency, last week changed China’s government bond rating to negative.

Ben Bernanke, the former Fed chairman, also wrote in a blog earlier this month that China was in “the classic policy trilemma of international economics” as it can’t have all the three: a stable exchange rate, an independent monetary policy and free international flows of capital.