Latest survey by China's central bank shows that 42.6 percent of
bankers in the country believe that the macro economy is
overheated, and 26.6 percent think the situation will continue.
The People's Bank of China and the National Bureau of Statistics
quarterly send questionnaires to principals of all kinds of banks
including foreign-funded ones, asking them about impression upon
the current economic situation.
Some 42.6 percent of bankers think the macro economy is
overheated in the second quarter of this year, and 26.6 percent
predict such situation will continue in the next quarter, which is
the maximum ratio in history.
China's economy is facing heightened overheating signs, as
outstanding bank loans surged 15.97 percent year on year by the end
of May amid a seemingly unabated investment binge.
So as to cool down the overheated economy, the People's Bank of
China in April raised the minimum rate commercial banks charge on
one-year loans in local currency, the yuan, 27 basis points, to
5.85 percent in an aggressive move to discourage lending. It was
the first increase since October 2004.
The survey, however, shows that 18.5 percent of bankers still
think the current monetary policy is too mild and further tightened
policy may come out in the next quarter. This is also the maximum
ratio in history.
(Xinhua News Agency June 18, 2006)