The government will look to upcoming economic data before deciding on further economic cooling measures such as an interest rate hike or an increase in bank reserve ratios, the National Development and Reform Commission (NDRC) said.

"If data for May and June show that investment and credit continue to post strong growth, the authorities could consider further adjustments to interest rates and to increase the reserve ratio requirement for banks," NDRC said.

"For now we should calmly observe the situation and closely monitor the development in the economy. It is inappropriate to issue further tightening policies in macro-control right now," the commission said in the report carried by the China Securities Journal.

The central bank made a similar statement last month after it began tightening credit in April.

Although the central bank raised its key one-year interest rate by 27 basis points to 5.85 percent April 28, it is still struggling to mop up excess liquidity contributing to excessive credit and investment, the report said.

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