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China Has The Ability To Control Prices Effectively.

2010/11/27 8:47:00 46

In November 25th,

National Bureau of Statistics

Yao Jingyuan, chief economist, said that inflation should be highly concerned and that price stability should be controlled in a comprehensive and combined way. China has the ability to maintain price stability.

Yao Jingyuan said that natural disasters also caused food prices to rise in 2010. At the same time, imported inflation caused by quantitative easing policy in the United States should also cause great concern. Stabilizing prices should be controlled in a comprehensive and combined way.

October

CPI

Up 4.4% over the same period, of which food prices accounted for more than 73%.

Yao Jingyuan said that the fundamental problem of inflation is the currency problem. In 2009, the size of China's new loans was close to 10 trillion yuan. China's money supply was very abundant, and commodity prices were directly proportional to the currencies in circulation.

In addition, we should criticize liquidity in the market.

Yao Jingyuan

It is said that China has implemented loose monetary policy and positive fiscal policy to make China take the lead in getting out of the crisis.

And the central bank has raised the deposit reserve rate for 5 consecutive times in 2010, and has adopted interest rate measures. The central bank is gradually recovering liquidity.

In November 20th, the State Council promulgated the notice of the State Council on stabilizing the general level of consumer prices and safeguarding the basic livelihood of the masses.

The notice requires that all localities and departments concerned take 16 measures in a timely manner to further improve the supervision and control of price regulation and stabilize market prices.

In response, Yao Jingyuan said that the measures adopted by the State Council guarantee quantity and price, increase supply and reduce the cost of circulation and stabilize prices.

China has the ability to control excessive prices and rapid rise.

In November 24th, the national development and Reform Commission issued a document emphasizing the regulation of market price supervision in accordance with the law. This is the fourth announcement of fourth stable prices released by the national development and Reform Commission for three consecutive days.

The people's Bank of China announced on October 19th that it will raise the benchmark interest rate for Renminbi deposits and loans of financial institutions since October 20, 2010.

At the same time, the continued interest rate increase will cause hot money inflow worries in the future.

In order to strengthen liquidity management and moderate regulation of money and credit, the people's Bank of China decided to increase the deposit reserve ratio of deposit financial institutions by 0.5 percentage points from November 29, 2010. This is the fifth time that the central bank has raised the deposit reserve ratio since 2010, and the reserve ratio of large deposit financial institutions has risen to 18%.