BIZCHINA / From Top Officials
Central banker sees no exacerbated inflation in near future
(Xinhua)
Updated: 2007-03-21 16:04
Inflation in China is not expected to increase significantly over the
medium term even though consumer prices have spiked over the past four
months, said Zhou Xiaochuan, governor of the People's Bank of China.
Speaking at the ongoing annual meeting of the Inter-American Development
Bank (IDB) in Guatemala City, Zhou said "we are concerned about a
tendency toward greater inflation, not the current inflation level."
In 2006, China's economy grew 10.7 percent, while the consumer price
index (CPI), a major inflation indicator rose 1.5 percent last year.
After hitting a 20-month high in November of 1.9 percent the index
followed in subsequent months with increases of 2.8 percent, 2.2 percent
and 2.7 percent, giving rise to public concerns about a higher inflation
rate.
The Chinese government's aim is to keep the country's CPI under three
percent in 2007, according to the government work report Premier Wen
Jiabao delivered at this year's 12-day session of the National People's
Congress.
Last week the central bank raised key interest rates by more than a
quarter percentage point in a bid to help "preserve price stability" and
prevent inflation from exacerbating.
Zhou also told the meeting that China would continue to restructure its
economy to encourage great domestic consumption and the economy was not
likely to make a hard landing.
The depreciation of the US dollar would not have a great impact on
China's economy, he added.
Zhou, on behalf of the Chinese government, signed a memorandum of
understanding with the IDB that provides a framework for the possible
admission of China as a member of the world's largest regional
development bank.
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