Price stability top priority, says China’s central bankSeptember 12th, 2011 - 4:32 pm ICT by IANS
Beijing, Sep 12 (IANS) The People’s Bank of China (PBOC), the country’s central bank, reiterated Monday that stabilising the overall price levels remained the top priority of macro-economic regulation.
Some factors that drive prices upward have been contained but not eliminated, while inflation remains relatively high, the Chinese central bank said in a statement on its website.
It said the country will continue the prudent monetary policy and keep the growth of credit stable and moderate, reported Xinhua.
The bank’s assurance came after data showed China’s consumer price index, a main gauge of inflation, climbed 6.2 percent year-on-year in August, cooling from a 37-month high of 6.5 percent in July.
According to PBOC statistics, by the end of August, the outstanding of broad money supply (M2), which covers cash in circulation and all deposits, rose 13.5 percent year-on-year to 78.07 trillion yuan ($12.20 trillion), down 1.2 percentage points from July growth and 5.7 percentage growth one year ago.
The slowdown in M2 growth was in line with the country’s prudent monetary policy, and current liquidity conditions remained compatible with the country’s stable and relatively fast economic growth, the central bank said.
PBOC also said it is researching a new “M2+” measure to cover wider money supply metrics as current M2 data had underestimated the total real liquidity due to the introduction of wealth management products.
- Stabilising prices remains top priority for China: central bank - Aug 13, 2011
- China's GDP growth sees moderate slowdown (Lead) - Jul 13, 2011
- China projects 4 percent consumer price rise - Mar 05, 2012
- China's inflation hits three-year high in June - Jul 09, 2011
- China's Q3 GDP grows at slowest pace in two years - Oct 18, 2011
- Growth will improve, but inflation will stay sticky: RBI - Apr 16, 2012
- China's GDP to grow by 8.8 percent in 2012 - Jan 03, 2012
- China cuts GDP growth to 7.5 percent in 2012 - Mar 05, 2012
- Inflation pressure may re-emerge in India: Morgan Stanley - May 03, 2012
- China likely to further raise interest rates: Analysts - Aug 07, 2011
- China money supply to increase 14 percent - Feb 18, 2012
- Sri Lanka's central bank keeps monetary policy unchanged - Oct 11, 2011
- China's banking assets top $16.8 trillion - Jun 09, 2012
- China to raise interest rates as prices rise - Jul 06, 2011
- Economic growth will fall below 6 percent: Kaushik Basu - Jul 31, 2012
Tags: bank of china, chinese central bank, consumer price index, economic regulation, liquidity conditions, metrics, monetary policy, money supply m2, pboc, percentage growth, percentage points, price stability, real liquidity, rose 13, s central, slowdown, top priority, wealth management products, xinhua, yuan