China's central bank will keep its monetary policy moderately loose and increase financial support to boost domestic demand and financial innovation, the People's Bank of China (PBOC) said Wednesday evening.

The PBOC will enhance counter- and cross-cyclical adjustments, leverage various monetary policy tools, coordinate monetary and fiscal policies, and promote economic stability, it said in the minutes of its meeting held July 4.

The meeting also called for better guidance on policy interest rates and improvements in the market-based interest rate.

Central bankers also called for an assessment and operation of the bond market and to pay attention to long-term bond yield changes.