BIZCHINA / News
Inflation worries PBOC
By Xiao Xin (China Daily)
Updated: 2007-06-28 08:47
The People's Bank of China (PBOC) is concerned about inflationary
pressure and is ready to make use of a range of monetary policy tools to
curb prices rises, a senior official said yesterday.
"The central bank is firm on keeping inflation under control," Yi Gang,
assistant governor of the PBOC, told reporters at a fiscal forum in
Beijing.
"We have many tools at hand," Yi added.
Related readings:
All eyes on CPI to gauge future monetary moves
Central bank: Inflation could lead to rate hike
Food prices continue to boost CPI growth
China has seen its consumer price index (CPI) exceed the benchmark line
of 3 percent set by the central bank - in May, it hit a two-year high of
3.4 percent, after reaching 3 percent in April.
People have been expecting the central bank to raise interest rates or
take other tightening measures to rein in rising prices.
The central bank will make proper use of the tools to control inflation
and keep price levels and economic growth stable, Yi said.
He added that increased asset prices would not be a factor in taking
tightening measures.
"We are mainly concerned with inflation, which mainly means CPI in
China," he said.
In the long run, the central bank aims to keep real interest rates
positive, Yi said.
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