[ 2007-06-28 17:24 ]
China's central bank is concerned by inflationary
pressures and is determined to make use of a range of monetary policy tools to
contain price increases, a senior official says.
A recent jump in consumer inflation, which hit 3.4 percent in May from a year
earlier, raised expectations among many analysts that the People's Bank of China
(PBOC) could raise interest rates or
carry out other tightening measures soon.
Yi Gang, assistant governor of the central bank, gave no indication of the
timing of any such move, but reasserted the PBOC's focus on prices.
"The central bank has a firm determination to keep inflation in check," Yi
told reporters Wednesday.
"We have many tools in our toolbox, including raising reserve requirements,
interest rates and also open market operations," Yi said.
"We will make comprehensive use of these tools to fight against inflation and
to keep growth in prices and the economy stable."
Yi said asset prices, though important, took a
back seat when the central bank debated whether to tighten
"We are paying keen attention to asset prices, but they are not the decisive
factor when determining macroeconomic control measures. We are mainly concerned
with inflation, which in China mainly means CPI," Yi said.
He said the recent pick-up in CPI was mainly due to increases in pork prices
and other food.
Over the long run, the central bank aimed to keep real interest rates
positive, Yi said.
take a back seat: 处于次要地位