"Policy fine-tuning will rely mainly on open market operations and I cannot see any possibility of changing interest rates or bank reserve ratios."
Song's comments and the sharp rise in house prices highlight Beijing's policy quandary.
On the one hand, policymakers want to avoid a buildup of market and economic imbalances, such as a debt-fueled property bubble.
On the other hand, they are reluctant to use more potent instruments to control the imbalances in case they also blunt a modest economic recovery ahead of a crucial policy meeting next month.
China's house prices in September rose 9.1 percent from a year earlier, the sharpest rise since January 2011, calculations of official data by Reuters shows. The CSI300 of leading Shanghai and Shenzhen A-share listings fell 1 percent as investors braced for possible measures to calm the property market.
Song said consumer inflation rather than property prices served as the central bank's key policy signpost. Money market traders said they would wait until Thursday's money market operation to conclude whether the central bank was trying to send a policy signal given that short-term rates have fallen sharply since the end of the third quarter.
(Read more: China property immune to tapering: China's richest man)
The weighted-average benchmark seven-day repo rate has dropped nearly a full percentage point over the last eight trading sessions.
Traders and economists believe current ample funding conditions in the financial system reflect in part official efforts to prop up economic growth and an effort by the central bank to make amends after it engineered a credit crunch in the interbank market in late June.
That move was widely seen as a warning to banks to rein in riskier lending, but the central bank appeared to have been admonished by the central government for the opaque way in which the cash squeeze was managed.
Now, however, economists believe the PBOC may have gone too far in the other direction.
China's economy grew at its fastest clip this year in the third quarter fueled largely by investment, but signs are emerging that resurgent credit growth might drive up inflation even as the recovery runs into fresh headwinds.
Consumer price inflation rose to a seven-month high of 3.1 percent in September from 2.6 percent in August, data showed last week. Tuesday's house price data from 70 major Chinese cities offered more evidence of price pressures.
(Read more: China logs best growth so far this year)
Song, however, saw little risk of inflation getting out of hand given steady demand and limited potential for a pick up in economic expansion as Beijing tries to gear the country more to consumer-led growth.
The adviser predicted policy fine-tuning would be sufficient to stabilize inflation at the current level in the fourth quarter and so keep the full-year rate comfortably below the government target of 3.5 percent.
Economic growth could ease to 7.5 percent in the fourth quarter from 7.8 percent in the third quarter, he said. But full-year growth could still come in at 7.6 percent, just above Beijing's 7.5 percent target, he added.