Subscribe free to our newsletters via your
. Earth Science News .

China central bank focused on inflation before growth
by Staff Writers
Tokyo (AFP) Oct 14, 2012

China's deputy chief central banker said Sunday his top priority is to control inflation, despite calls by developed economies to ramp up consumer demand and domestic pressure to chase growth.

"The first thing... is (to) control inflation is our number-one job. As a central banker, we have to control inflation," Yi Gang, deputy governor of the People's Bank of China told delegates to the annual meetings of the International Monetary Fund and the World Bank in Tokyo.

Yi stepped in to deliver the speech when his boss, bank governor Zhou Xiaochuan pulled out. He and Finance Minister Xie Xuren stayed away as part of what observers said was a protest over a territorial row with Japan.

"Leaders of local governments are eager to develop the economy in their regions. So everybody is enthusiastic about development and they want investment, they want to have FDI (foreign direct investment).

"Desire for higher growth is all over the country," he said.

"As a central banker, you have to constantly remind the whole country, the central government as well as local governments... (of) the danger of inflation."

Yi argued that the value of the yuan was "close to the equilibrium rate" set by the market, with Beijing authorities refraining from direct intervention in recent quarters.

Critics argue China keeps its currency artificially low to give its exports a competitive edge.

Yi said China has to reform its ways "gradually" as it opens its economy to market-oriented principals.

When asked the scope of the next round of stimulus, Yi only said: "large enough to stabilise growth, but not too large to cause further negative impact, problems."

Yi added that China was not promoting internationalisation of the yuan, also known as renminbi, but has liberalised its use for the market.

"I think the central bank's, or my attitude, is that internationalisation of renminbi is entirely market-driven phenomenon," he said.

"In the past, China restricted using renminbi. That's not fair. What the central bank did was to remove barriers for using renminbi."

"If our trade partners and investment partners like using renminbi, why not?"


Related Links
The Economy

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Fiscal policy should be 'growth friendly': IMF body
Tokyo (AFP) Oct 13, 2012
The world economy needs to balance austerity with growth if it is to recover fully from the global financial crisis, a key IMF committee said in Tokyo on Saturday. "Fiscal policy should be appropriately calibrated to be as growth-friendly as possible," the International Monetary and Financial Committee said in a communique. The statement came after days of back and forth between those -- ... read more

Planning can cut costs of disasters: World Bank

12 Chinese workers killed, 24 hurt in dormitory blaze

Far, far beyond wrist radios

World leaders meet on disaster management in Japan

Amazon offers refunds following e-book settlement

Shares in China's ZTE slump after profit warning

U.N.: 6 billion cellphone subscriptions

Swedish breakthrough in space on NASA satellite with electronics from AAC Microtec

Scientists Uncover Diversion of Gulf Stream Path in Late 2011

Documented decrease in frequency of Hawaii's northeast trade winds

Too much of a good thing can be bad for corals

Judge scraps Amazon dam hearing

NASA's Operation IceBridge Resumes Flights Over Antarctica

Antarctic Sea Ice Reaches New Maximum Extent

Polarstern returns with new findings from the Central Arctic during the 2012 ice minimum

DRI scientist co-authors study outlining vast differences in polar ocean microbial communities

Gene Suppression Can Reduce Cold-induced Sweetening in Potatoes

Nepal culls chickens amid bird flu outbreak

Strengthening a billion-dollar gene in soybeans

Nasdaq OMX, China's Dalian Commodity team up

Scientists identify trigger for explosive volcanic eruptions

New hurricane forms over Pacific

Japan's TEPCO admits downplaying tsunami risk

6.7 magnitude quake strikes off Indonesia's Papua

Critical bishop expelled from Chad back in Italy

Four dead after day of violence in restive Nigerian city

Thousands march in Mali to urge intervention against Islamists

Nigerian farmers sue Shell in Dutch case with global reach

Nasty noises: Why do we recoil at unpleasant sounds

UN report warns of possible rise in child marriages

Chimps said attacking humans in Africa

New human neurons from adult cells right there in the brain

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement