China Finance Review

China’s economy “moderate inflation + moderate growth”

16th February, 2010

Yesterday, the central bank with the National Bureau of Statistics released the first month of 2010 macroeconomic data, from slightly below market expectations of the consumer price index (CPI), to the gains continue to expand the ex-factory price index of manufactured goods (PPI) and then to the National 70 large medium-sized cities record high housing sales price,  all consistent with the “moderately comfortable” of the future credit facilities,  and all are showing that “moderate inflation+ moderate growth”  of the current economic structure is taking shape, and there is still room for economic stimulus policy.

However, to maintain growth while controlling inflation and asset price bubbles has become a major issue. On the same day, the central bank issued the “2009 fourth quarter monetary policy implementation report,” the report noted that the next phase of the central bank will continue to implement an appropriate loose monetary policy, while also strengthening the liquidity management, comprehensive use of various monetary policy tools to guide monetary reasonable growth of credit amount.