Central Bank wary of inflationary pressure as yuan-revaluation expectations rise

09:01, November 25, 2010      

Email | Print | Subscribe | Comments | Forum 

The People's Bank of China warned Wednesday that the country was facing increased inflationary pressures due to capital inflows and amid expectations of a revaluation of the yuan.

Deputy Governor Hu Xiaolian put out an online statement outlining these fears a day ahead of a meeting on monetary policy.

Hu said the capital flows made managing liquidity more difficult because of "the quantitative easing policy that leading developed nations are continuing to follow" - a thinly veiled reference to the United States.

She warned that China would struggle to meet its lending target for the year, as demand for credit had been strong in recent months. After a record of 9.6 trillion yuan ($1.4 trillion) in new loans last year, Beijing set a moderately lower target of 7.5 trillion yuan for this year.

"The speed of Chineseeconomic growth continues, overseas trade and foreign capital have also risen in consequence and expectations of a renminbi revaluation continue to grow," she said.

The central bank will manage liquidity and continue to regulate credit, she said.



Source: Global Times/Agencies

(Editor:李佳)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion