China c.bank to cool credit growth in 2021, avoid premature policy tightening -sources China’s central bank will scale back support for the economy in 2021 and cool credit growth, but fears of derailing a recovery from a pandemic-induced slump and debt defaults are likely to prevent it from tightening any time soon, policy sources said. This expands on a theme recently outlined at China’s annual Central Economic Work Conference to plan for 2021, where leaders said the country would keep its proactive fiscal policy and make monetary policy flexible and targeted. The People’s Bank of China (PBOC) is poised to keep its benchmark lending rate unchanged in coming months, while steering a steady slowdown in credit expansion in 2021, said the three sources, who are involved in internal policy discussions but did not want to named as the details are not yet public.