No change in monetary policy: central bank
0 Comment(s)
Print
E-mail China.org.cn, March 13, 2015
|
|
|
Zhou Xiaochuan, governor of People's Bank of China, smiles while taking questions from journalists at home and abroad during an ongoing press conference on March 12, 2015. [Photo/China.org.cn] |
Producer price index under control
China's producer price index (PPI) fluctuates wildly due to the country's "new normal", as well as being influenced by changes in global commodities trade, Zhou said.
China's existing monetary policy guarantees liquidity in the financial market, but is still moderate, Zhou said.
China will continue to keep an eye on the PPI trend. Downward pressure on PPI will be controlled by a proactive fiscal policy and monetary policy, Yi added.
Capital flight exists, but portion small
The majority of capital flow results from ordinary trade settlement and cross-border investment, while the number of capital flight from China is small, said Zhou.
Zhou said interest rate increase in the US will lure more investment in the US dollars, but is unlikely to open huge rooms for speculation and trigger a big threat.
Such interest rate increase will mean a significant recovery for the US economy, and will also send good signal to the whole world, added the governor.
Zhou said China is flush with international trade and investment, and companies and investors choose on their own the timing to settle their payment.
"The majority of the capital flow is soundly backed by normal trades and investment," he said , adding that capital chasing for the short-term speculative return exists but is not a serious issue for China.
Go to Forum >>0 Comment(s)