Chinese economy ‘in good shape’

China’s economy is in good shape and recent steps to cool rapid growth are working, the central bank said on Friday, the latest in a string of comments that have eased expectations of an imminent interest rate hike.

“Overall, China’s economic situation is good, and macro-control efforts have obtained clear results,” the bank said in a statement issued at the end of a quarterly meeting on monetary policy.

China would also push ahead with reforms to make interest rates more market-oriented, and would keep the yuan currency stable at a “reasonable and balanced” level, the People’s Bank of China said in a statement.