BEIJING, April 20 -- China's central bank said Thursday there is no long-term deflation or inflation basis in the country as the aggregate supply and demand is generally balanced, the monetary conditions are reasonable and moderate, and residents' expectations are stable.

The rapid growth of money supply and credit coexists with falling prices, which is essentially influenced by time lag, said Zou Lan, an official with the People's Bank of China, at a press conference.

With the strong support of a package of policies to stabilize the economy, domestic production has continued to recover at a faster pace, but demand recovery is relatively slow as it takes time to lift people's consumption willingness, especially bulk consumption, said Zou.

The consumer demand is expected to pick up further as financial supports continue to take effects, Zou said.

China's consumer price index, a main gauge of inflation, rose 1.3 percent year on year in the first quarter of the year, and the growth rate was moderating, official data showed.