BEIJING/SHANGHAI, April 6 (Reuters) - An official with the Chinese central bank said on Wednesday that liquidity in the country's financial market remained excessive, making its fight against inflation difficult, several traders who attended a meeting with the official said.
The inflation situation this year is still "not optimistic", making this year's credit controls still a difficult task, the official added, according to the traders.
The People's Bank of China (PBOC) faces challenges in particular from capital inflows and a large volume of maturing central bank bills and bond repurchase agreements in its open market operations, the official said, according to the sources who attended the meeting.
The official added that China needed to consider the policy changes of foreign central banks when deciding its monetary policy, the traders said.
The PBOC held the meeting with primary dealers in its open market operations to discuss its work in the operations in the coming year.
The PBOC on Tuesday raised interest rates for the fourth time since October as part of its fight against inflation. [ID:nSGE735004] (Reporting by Reuters China bureaux; Editing by Jacqueline Wong)