From Reuters via International Herald Tribune:
China’s central bank will implement a tight monetary policy in 2008, using a range of tools to keep a check on liquidity, the central bank governor, ?Zhou Xiaochuan , reaffirmed.
The People’s Bank of China has waged a war on excess liquidity and inflation in 2007, raising interest rates six times and increasing the proportion of deposits that banks must hold in reserve 10 times, to a record level. Still, annual consumer inflation is running at the quickest pace in over a decade, and many economists are concerned that it could spill over from food into the broader economy. [Full Text]
[Image: Chinese officials have been hinting that the country’s leadership sees advantages in a stronger yuan., by Diego Azubel from European Pressphoto Association.]
