China has vowed to implement its prudent monetary policy in a bid to set the domestic economy on the right track as uncertainties abound both at home and abroad.

To realize this year's economic and social development goals, China needs to properly coordinate the relationship between monetary supply and structural overhaul as well as checking inflation and advancing economic growth, according to a statement released after an executive meeting of the State Council, China's cabinet, presided over by Premier Wen Jiabao.

The statement said China will adopt multiple tools, including an open market operation, a bank reserve requirement ratio and interest rate adjustments to check market liquidity.