China is under pressure to loosen monetary policy to kick-start its economy, but Beijing should resist, as rate cuts would be a mistake, said international investor Jim Rogers.

Loose policies, especially cuts to banking-reserve requirements, could fuel a property bubble, which would derail the Asian giant when it bursts.

“I think they’re a mistake and there’s still inflation in China,” Rogers told CNBC Asia’s “Squawk Box.”

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

China has cut reserve requirement ratios for banks to spur more lending recently as well as interest rates earlier this year.

Even though property prices have fallen since the boom, it's not the time to fuel another bubble.

“Yes, the property bubble has popped and prices have started coming down but not enough in my view. The most recent statistics show that Chinese property market is starting to recover,” Rogers said.

Past moves to cut reserve requirements and interest rates have halted price declines and even brought in homebuyers more recently, with prices of new homes rising in 49 cities in July, the most since May of last year, CNBC added.

Now is the time to stay put and let the economy recover on its own.

“You stay tight. China has given in two or three times in the past few years when they have tried to pop the bubble. Things start declining, they get nervous, they loosen up again and it gets worse. I would stay tough,” Rogers said

Still, some Chinese monetary policy officials say they aren't ruling out any policy moves.

"All tools must be made available," said Zhou Xiaochuan, governor of the People's Bank of China, when asked by reporters if he favored money market operations over interest rates, or reserve rate requirements, according to Reuters.

Money market operations pump liquidity into the economy without encouraging excessive bank lending.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation