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22-05-2006

Banca centrale cinese, apertura definitiva

Central Bank releases annual report

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May 22, 2006 (China Knowledge) - China’s central bank will be pursuing a policy of slowing down credit growth and fine-tuning its policies this year, it announced last week in its annual report.

The bank will also push for reforms of its exchange rate regime and keep the renminbi stable, reported Reuters in a summary of the report.

The tools it expects to use include adjustments to bank reserve requirements, rediscount rates and open market operations.

However, the report did not mention any interest rate adjustments planned for the year.

One of the risks that face the Chinese economy is rebounding of fixed-asset investment. The bank also warned of the possibility that bad loans could increase and financial risks could grow.




Copyright 2006 www.chinaknowledge.com


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