Related News
Curbing prices still a priority, says bank
By Feng Jianmin |
September 13, 2011, Tuesday
|
Print Edition
Print Edition
CHINA will continue to prioritize curbing prices and maintain its prudent monetary policy, the central bank said after data showed cooled inflation and higher lending in August.
"Some factors that drive prices upward have been contained but not eliminated, while inflation remains relatively high," the People's Bank of China said in a statement on its website yesterday.
It reiterated that stabilizing overall price levels remained the top priority of macro-economic regulation, and the country would continue its prudent monetary policy and keep the growth of credit stable and moderate.
The comments came amid market speculation that China will introduce stricter regulations to curb lending.
Some state-owned lenders have been ordered to freeze at least 20 billion yuan (US$3.1 billion) at the central bank via designated central bank bills as a "punishment" for lending too strongly in August, media reports said, citing unidentified banking sources.
Low interest
Banks that don't toe the central bank line carefully enough were required to buy the bills that were issued with very low interest, a trader in a bank said.
On Sunday, the central bank said new yuan loans reached 548.5 billion yuan in August, 55.9 billion yuan more than July and 9.3 billion yuan more than last year.
"The growth in new loans probably indicates that the monetary policy has been easier to some sectors such as small enterprises, but the monetary policy in general has not loosened as inflation is not likely to cool significantly in the near future," the Bank of Communications wrote in a report.
The report said the central bank will rely more heavily on open market operations to withdraw liquidity, and estimated that new loans will total 7 trillion to 7.3 trillion yuan this year, compared to last year's 7.95 trillion yuan.
Peng Wensheng, a China International Capital Corp analyst, said another interest rate rise is expected this year, most likely this month or in October, to further contain inflation.
China's consumer price index cooled to 6.2 percent in August from its 37-month high of 6.5 percent in July, China's top statistics bureau said last Friday. However, inflation is still among the highest levels in the past three years.
"Some factors that drive prices upward have been contained but not eliminated, while inflation remains relatively high," the People's Bank of China said in a statement on its website yesterday.
It reiterated that stabilizing overall price levels remained the top priority of macro-economic regulation, and the country would continue its prudent monetary policy and keep the growth of credit stable and moderate.
The comments came amid market speculation that China will introduce stricter regulations to curb lending.
Some state-owned lenders have been ordered to freeze at least 20 billion yuan (US$3.1 billion) at the central bank via designated central bank bills as a "punishment" for lending too strongly in August, media reports said, citing unidentified banking sources.
Low interest
Banks that don't toe the central bank line carefully enough were required to buy the bills that were issued with very low interest, a trader in a bank said.
On Sunday, the central bank said new yuan loans reached 548.5 billion yuan in August, 55.9 billion yuan more than July and 9.3 billion yuan more than last year.
"The growth in new loans probably indicates that the monetary policy has been easier to some sectors such as small enterprises, but the monetary policy in general has not loosened as inflation is not likely to cool significantly in the near future," the Bank of Communications wrote in a report.
The report said the central bank will rely more heavily on open market operations to withdraw liquidity, and estimated that new loans will total 7 trillion to 7.3 trillion yuan this year, compared to last year's 7.95 trillion yuan.
Peng Wensheng, a China International Capital Corp analyst, said another interest rate rise is expected this year, most likely this month or in October, to further contain inflation.
China's consumer price index cooled to 6.2 percent in August from its 37-month high of 6.5 percent in July, China's top statistics bureau said last Friday. However, inflation is still among the highest levels in the past three years.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
