(Bloomberg) -- China is confident it can ensure steady economic growth and keep inflation in check, according to officials at the top economic-planning agency, who reiterated a vow to tap policy reserves when necessary.

The government will coordinate Covid control and economic development in a “highly effective” way, adjusting policy based on the local situation to contain outbreaks and avoiding “one-size-fits-all” policies, said Ou Hong, a deputy secretary general of the National Development and Reform Commission. It will accelerate the resumption of work, smooth problems in transportation and logistics, and restore normal production and life, while also sticking to “dynamic Covid Zero,” he said. 

“We will expand and improve our policy tool box and introduce measures at the appropriate time,” Ou said Tuesday at a briefing in Beijing. “We are completely confident in overcoming difficulties and challenges facing the economy and capable of handling various unexpected changes to ensure steady, healthy and sustainable development.”

Ou didn’t explain what specific measures were in the policy reserve. However in late May, Premier Li Keqiang warned that the central government had limited cash resources left to help the provinces this year, according to the Financial Times. 

China’s economy had a mixed recovery in May, with industrial output beating expectations and returning to growth while consumer spending and the property market remained in contraction. President Xi Jinping pledged last week to strive to meet economic targets for the year by adopting more effective measures, although Beijing’s Covid Zero strategy has caused analysts to cut their forecasts for annual growth to levels far below the official goal of around 5.5%.

Ou’s comments echoed recent remarks made by Finance Minister Liu Kun, who said that authorities are studying new policy tools to support the economy and planning to front-load stimulus.

The NDRC will “appropriately front-load” the construction of infrastructure that can help guide industrial development and urbanization, Yang Yinkai, another deputy secretary general of the agency, said at the same briefing. The authorities will promote the growth of advanced manufacturing, modern services and strategic emerging industries to provide more suitable jobs for young people, given “rising employment pressure” on the group, he said.

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Noting headwinds from imported inflation amid geopolitical tensions, Yang said China can maintain stable prices due to ample supply and policy preparation. The government will strengthen the adjustment of hog production to prevent large price volatility, guide coal costs to stay in a reasonable range, and strengthen market supervision to crack down on hoarding and “firmly curb speculation by capital,” he said.

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