China's central bank reiterated plans to improve the yuan's exchange-rate mechanism and keep curbs on loans and investments on Monday, signaling an unchanged monetary policy.

The bank will "strengthen coordination of the internal and external currency policies," the People's Bank of China said after a quarterly meeting of its monetary policy committee. China will give the market a "fundamental role" in setting the yuan's value while keeping the exchange rate stable, it said.

The statement suggests China will use gradual yuan gains as well as higher interest rates and loan curbs to cool the fastest-growing major economy. The central bank last month raised its benchmark rate to an eight-year high, part of efforts to prevent cash from a record 177.5 billion U.S. dollars trade surplus spurring investment in unneeded factories and real estate, Bloomberg News said.

"China wants to demonstrate to the international community, or to the U.S., that China is willing to show some currency flexibility," said Bank of America Corp's economist Wang Qing, speaking before the central bank released its statement.

U.S. lawmakers and manufacturers accuse China of keeping the yuan's value artificially low to spur exports. The yuan, or renminbi, has gained about 7 percent against the U.S. dollar since China ended a decade-old fixed rate in July 2005. The currency closed little changed at 7.7340 to the U.S. dollar on Monday.

China "should further strengthen the coordination between monetary policy and other fiscal, industrial, trade and financial policies," the central bank said on its Website. The central bank said it will be more "preemptive" and "effective" in its policies.