Focus on inflation before adjusting monetary policy

China's central bank governor says close attention should be paid to continually moderated inflation that is dragged down by weakening global commodity prices before making further adjustments on monetary policy.

Any deflation risk should be noticed in time, said Zhou Xiaochuan, governor of the People's Bank of China, at the 2015 Boao Forum for Asia on Sunday.

Previous targeted and quantitative easing measures, including interest rates and reserve requirement ratio cuts, have injected liquidity into the market, and the effects will be seen after a period of time, Zhou said.

Chinese monetary policy should support economic structural reforms, during which period some traditional industries will face "big troubles", he added.

"The outdated businesses have occupied too many resources in the banking system, which should be reduced and allocated more to the small- and medium-sized enterprises in the high-tech and innovation sectors," according to Zhou.

The central bank governor said that China has gradually stepped out of the "abnormal" monetary policy, or aggressive stimulus package, that arose out of the 2008 global financial crisis. "We will rely more on comprehensive monetary tool sets, including the price adjustment mechanism and quantitative measures, to achieve more effective monetary policy," he said.