Home | Register | Login | Help | Forum | Log out
Agencies & Partnership
Company Directory
Our Global Network
About Us
Focus News Industry research Exhibition Regulation & Law Executive Talks
Search:
 
Home > Resources > News > Business > Finance
Central bank considers monetary policy
POSTED: 9:47 a.m. EDT, June 6,2007

The central bank might consider using monetary policy to cope with the recent surge in food prices and maintain the stability of the currency, central bank Governor Zhou Xiaochuan said yesterday.

"We are paying close attention to the recent rises in pork and egg prices," Zhou told reporters on the sidelines of a banking forum in Beijing .

"There are many reasons behind the price changes, including money supply, international market movements, domestic food supply and demand, and so on," Zhou said.

"Food prices weigh heavily on the consumer price index (CPI ). As long as they are having an impact on the value of the yuan, the central bank will adopt monetary policy to maintain its stability," he said.

However, "the central bank still needs to look at the overall CPI for May", to decide its next policy moves, Zhou said.

The CPI figures are due to be announced early next week.

The CPI rose 3.3 percent in March and 3 percent in April, reaching the 3 percent benchmark that had been set by the central bank.

The recent surges in the price of pork and eggs, coupled with continuous rises in the price of grain and other agricultural products, are putting pressure on inflation, causing concerns for policymakers.

Food prices account for a third of the CPI basket.

Statistics from the Ministry of Commerce showed wholesale pork prices in 36 major cities in early May climbed 43 percent from a year earlier. Egg prices rose 31.6 percent year on year .

A research report released by Goldman Sachs late last month indicated that the surging price of pork and eggs would probably push the rise in the CPI above 4 percent in the coming months.

The investment bank has accordingly adjusted its CPI forecast from 2.6 percent to 3.6 percent for the whole year.

It also said that it is necessary for the People's Bank of China to raise interest rates to check potential inflation.

Asked whether the central bank would increase interest rates again in the near future, Zhou said it would not rule out the possibility of using various monetary tools.

The central bank has already raised interest rates twice this year and five times required commercial banks to set aside more money as reserves to cool inflation, fixed-asset investment and stock market speculation.


From:
Print | Save
RELATED
Central bank: interest rates up again (2007-5-21 9:50:00)
Central bank to retain USD reserves (2007-5-11 9:39:00)
Central Bank to Raise Deposit Reserve Ratio by 0.5% points (2007-4-29 13:30:00)
Senior Central bank official rejects IMF advice on yuan (2007-4-16 10:36:00)
China's central bank to raise deposit reserve ratio (2007-4-6 16:25:00)
Yuan dips on signal from central bank (2007-2-13 13:07:00)
Chinese central bank favors more flexible exchange rate regime (2007-2-10 11:32:00)
Slovenia gets congratulations and warnings at end of successful euro changeover (2007-1-16 11:26:00)
China's loan growth slows down in November (2006-12-15 9:53:00)
Home - Shipping - Airfreight - Integration - Members - Resources - My Jctrans - Links
About Us - Help - Contact Us - Site Map
嶄猟利
Privacy Policy - Terms of Use
Copyright Notice 2000-2007 Jctrans.com Corporation and its licensors. All rights reserved.