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BIZCHINA / Center
Central bank?vows to prevent overheating
(Xinhua)
Updated: 2007-08-09 09:31
Chinese central bank said on Wednesday it would put the task of
preventing the national economy from overheating as the top priority of
current macro control.
The country's economy has recorded a stable and fast growth in the first
half, and it is highly possible it would maintain a high growth rate in
the second half under the favorable conditions, said the People's Bank of
China in its second-quarter monetary report.
However, it pointed out there was a more obvious trend for the economy to
shift from fast growth to overheating.
Related readings:
?Economy on verge of overheating
?Asset prices may keep rising in 2nd half
?Top leadership warns on overheated economy
?Economic boom may slow in second half
The expanding trade surplus and rapid growth of bank loans and investment
remained big challenges to the economy, it said.
China's GDP expanded 11.9 percent in the second quarter this year,
lifting first-half growth to 11.5 percent, the National Bureau of
Statistics announced in July.
The central bank said it would continue to implement the prudent monetary
policy in the second half and would call into necessary macro control
measures to maintain the stability of the country's financial situation.
It also pledged to take measures to control the inflationary expectations
and maintain the price stability, according to the report.
The bank said it would continue to address the excessive liquidity with
open market operations and reserve requirement ratio and also with the
creation of more hedging instruments.
The central bank would let the market supply and demand play a bigger
role in determining the yuan exchange rate and make it more flexible
while maintaining the stability of the currency's exchange rate at a
reasonable and balanced level, said the report.
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