China is in no rush to follow other countries in significantly loosening monetary settings but has ample options to help prop up slowing growth, its central bank head said, maintaining its cautious approach to stimulating the economy.

People's Bank of China (PBOC) governor Yi Gang said macro-economic policies have significant room to move, especially on the fiscal and monetary fronts.

"But we are in no hurry to take measures similar to central banks of other countries...such as interest rate cuts or quantitative easing policies," Yi said.

China cut its new one-year benchmark lending rate for the second month in a row on Friday, as the central bank seeks to lower borrowing costs to support smaller firms affected by the trade war and wider slowdown.

Yi said there was still plenty of room to manoeuvre on monetary policy, though such options but should be "cherished". He also said that authorities would maintain "normal" monetary policy for as long as possible. "China's monetary policy will maintain its prudent orientation," he said.