Chinese central bank said on Wednesday it would put the task of
preventing the national economy from overheating as the top
priority of current macro control.
The country's economy has recorded a stable and fast growth in
the first half, and it is highly possible it would maintain a high
growth rate in the second half under the favorable conditions, said
the People's Bank of China in its second-quarter monetary
report.
However, it pointed out there was a more obvious trend for the
economy to shift from fast growth to overheating.
The expanding trade surplus and rapid growth of bank loans and
investment remained big challenges to the economy, it said.
China's GDP expanded 11.9 percent in the second quarter this
year, lifting first-half growth to 11.5 percent, the National
Bureau of Statistics announced in July.
The central bank said it would continue to implement the prudent
monetary policy in the second half and would call into necessary
macro control measures to maintain the stability of the country's
financial situation.
It also pledged to take measures to control the inflationary
expectations and maintain the price stability, according to the
report.
The bank said it would continue to address the excessive
liquidity with open market operations and reserve requirement ratio
and also with the creation of more hedging instruments.
The central bank would let the market supply and demand play a
bigger role in determining the yuan exchange rate and make it more
flexible while maintaining the stability of the currency's exchange
rate at a reasonable and balanced level, said the report.
(Xinhua News Agency August 9, 2007)
