China aims to stabilize inflation

China has recently returned to the forefront of the news for having invited both the U.S. and Europe to review and correct their own debt. The People's Bank of China also stated that it will continue with its policy of price stabilization, as this is a top priority. Also one of the things that the Chinese central bank set as a goal in the coming months is to support the country's economic growth. Based on the national economic situation and international, the Chinese central bank will work to make its monetary policy more focused, flexible and forward looking.

The Chinese central bank will use various monetary instruments, including the management of interest rate, exchange rates and open market operations to control liquidity and to maintain the country's finance office, to a reasonable level. To manage inflationary expectations, the bank will aim to use the correct monetary policy, namely the rate of interest, with which you can control the demand for capital investment and savings.

Meanwhile, China said it would increase efforts to promote the country's credit facility, including a strengthening of the agricultural sector and small and medium-sized enterprises, which are the basis of the country. In addition there will be some very strong guidance to the market, with the exchange rate reform and improve the formation mechanism of the yuan in order to add flexibility.

The country is still going well, as the index of consumer prices, which is an indicator of inflation, was 6.5 percent in July, well above the government target, fixed at 4 percent. The situation seems to favor the growth of the Chinese economy.

Posted in: Economy