INTERVIEW-UPDATE 1-China to stick to loose policies -PBOC's Fan

* China's economy is seen on track to grow 8 pct in 2010

* Loose policies to stay, changes hinge on econ conditions

* China to avoid sharp yuan move, FX diversification gradual (Adds quotes)

SINGAPORE, Nov 6 - China's economy has stabilised and is on track to achieve economic growth of 8 percent next year but will stick to its loose fiscal and monetary policies for now, central bank adviser Fan Gang told Reuters on Friday.

There is little chance that China will let its yuan currency move sharply despite foreign pressures, said Fan, a member of the monetary policy committee of the People's Bank of China.

"The economy has stabilised and I personally believe the recovery will be sustained," Fan told Reuters in an interview.

Financial leaders of the Group of 20 nations, in Scotland for a two-day meeting until Saturday, are expected to discuss the need to rebalance global economies which may include the calls for Asian currencies to rise.

Gross domestic product growth accelerated to 8.9 percent in the third quarter from 7.9 percent in the April-June quarter thanks to fiscal stimulus, making the annual 8 percent growth goal within reach.

"There is no problem for China to achieve 8 percent growth in 2010.," Fan said.

Officials see growth rate of 8 percent as the minimum needed to maintain social stability.

China is likely to see exports grow next year, but the government will continue to run a budget deficit of around 3 percent of GDP next year to help sustain fiscal stimulus, Fan said.

Inflation would not be a problem in the near term, partly due to China's huge manufacturing capacity, he added.

"Overall, polices are still loose. Any adjustment in policies will depend on economic conditions," Fan said.

Fan, director of the National Economic Research Institute, a Beijing-based think-thank, is the only academic sitting on the central bank's 13-member monetary policy committee.