Inflation worries PBOC

http://www.chinaccm.com 2007-6-28 13:39

    The People's Bank of China (PBOC) is concerned about inflationary 
pressure and is ready to make use of a range of monetary policy tools 
to curb prices rises, a senior official said yesterday. 

    "The central bank is firm on keeping inflation under control," Yi 
Gang, assistant governor of the PBOC, told reporters at a fiscal forum
 in Beijing. 

    "We have many tools at hand," Yi added. 

    China has seen its consumer price index (CPI) exceed the benchmark 
line of 3 percent set by the central bank - in May, it hit a two-year 
high of 3.4 percent, after reaching 3 percent in April. 

    People have been expecting the central bank to raise interest rates
 or take other tightening measures to rein in rising prices. 

    The central bank will make proper use of the tools to control 
inflation and keep price levels and economic growth stable, Yi said. 

    He added that increased asset prices would not be a factor in 
taking tightening measures. 

    "We are mainly concerned with inflation, which mainly means CPI 
in China," he said. 

    In the long run, the central bank aims to keep real interest 
rates positive, Yi said.