Tighter policy to stay

The central bank said yesterday it will maintain its tight monetary policy stance to keep inflation under control, despite a possible global slowdown that may drag down China's economy.

The People's Bank of China said in a statement that although economic growth is stable, the country faces increasing pressure from a potential investment upswing, excessive lending and liquidity. Meanwhile, global uncertainties and risks are rising as the US subprime crisis worsens.

"The pressure from rising prices is evident," the statement said. The central bank also urged the government to take measures to increase the supply of goods and anchor inflationary expectations to ease pressure.