Latest News:  
Beijing   Light rain/Overcast    8 / 5   City Forecast

People's Daily Online>>China Business

China to continue prudent monetary policy, inflation control


09:28, November 17, 2011

BEIJING, Nov. 16 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, said Wednesday it will continue to maintain the current prudent monetary policies while making them more targeted and flexible.

The country will closely monitor the changes in economic and financial situations both domestically and globally, and preset or fine tune the policies when needed, according to a PBOC report concerning monetary policies implemented in the third quarter.

The central bank's decision to continue the prudent monetary policies came amid speculation of policy loosening in the world's second largest economy as GDP growth in the third quarter expanded at the slowest pace in two years.

The economy grew 9.1 percent year-on-year in the third quarter, compared to 9.5 percent in the second quarter and 9.7 percent in the first. The nation's consumer price index (CPI), the main gauge of inflation, increased 5.5 percent last month year-on-year, marking the slowest rise since May.

However, the report warned that the future trend of consumer prices remained unclear and that the foundation for stable price levels was still not solid. The central bank said the nation's policies to control inflation could not be loosened.

It said that a continuous rise in the country's labor costs and the prices of services was among the factors that could heighten inflationary expectations, while the CPI would also become more sensitive to the general demand.

An index tracking the urban resident's inflationary expectations rose 2.6 percentage points in the third quarter compared to the previous quarter, while more people held that the current property prices were too high.

【1】 【2】

We Recommend


Leave your comment0 comments

  1. Name


Selections for you

  1. Re-entry capsule of Shenzhou-8 set to land on earth Thursday

  2. Cute sleeping babies

  3. Jinan military region drill enters critical stage

  4. Marvelous cars at 2011 Dubai int'l auto show

Most Popular


  1. Gold prices likely to rise, not fall next year
  2. RMB appreciation will not ease US troubles
  3. Australia could be caught in Sino-US crossfire
  4. China helped EU in crisis enough
  5. Second-power status brings many risks
  6. China model can absorb best of the West
  7. India's increasing troop may go nowhere
  8. Alert : Another war is coming?
  9. Rising food prices endanger Asia's poor
  10. Monopoly probe should not be a go-to-jail card

What's happening in China

Bullet trains on track

  1. Microblog job titles still widely sold online
  2. Police and officials link to schoolgirl prostitution
  3. Leaving shadow of crime behind
  4. Insurance resolution draws mixed reaction
  5. Germany's Hamburg seeks trust, chance in China

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance