The governor of the People's Bank of China (PBOC) stated on Tuesday that monetary policy will stay accommodative to bolster the economy, yet pressed for structural reforms to reduce the dependence on property and infrastructure for growth.

Speaking at the HKMA-BIS High-Level Conference in Hong Kong, Pan Gongsheng said economic momentum over the past few months indicated China would reach its 5% growth target for this year.

"I'm confident that China will enjoy healthy and sustainable growth in 2024 and beyond," he commented.

Pan added that he forecast consumer inflation would rally in the coming months and pointed to improvement in the country's purchasing manager's index of business activity.

Consumer prices in China declined last month as domestic demand weakened and factory-gate deflation worsened.

The government implemented a series of measures throughout the year to boost the economic recovery following the pandemic, hindered by the downturn in the property sector, a global growth slowdown and geopolitical tensions.

Last month, China introduced plans to issue 1 trillion Yuan ($139.84 billion) in sovereign bonds by the end of 2023, increasing this year's budget deficit target to 3.8% of GDP from 3%.

In addition, the People's Bank of China unveiled modest cuts to interest rates and introduced more cash into the economy over the past few months, pledging to maintain policy support.

"Going forward, the PBOC will continue to keep its monetary policy accommodative to provide support to the economy," Pan said.

The governor said it would be more important for the country to target high-quality, sustainable growth.

"The traditional model of relying heavily on infrastructure and real estate might generate higher growth but would also delay structural adjustment and undermine growth sustainability," he said.

"The ongoing economic transformation will be a long and difficult journey, but it's a journey we must take."