By Zhou Xin and Simon Rabinovitch

BEIJING (Reuters) - China's currency reserves surged past the $2 trillion mark in June and bank lending hit a record high as the central bank showed concern that the flood of cash is pumping up asset prices and could sow the seeds of inflation.

China is not tightening monetary policy aggressively. Analysts rule out interest rate rises this year as the government and central bank agree on the political imperative to ensure a rock-solid recovery in the world's third-largest economy.

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