China's central bank governor Zhou Xiaochuan said on June 5 that
the central bank still needs to look at the overall consumer price index (CPI) for May to decide its next policy moves, according to
China Central Television (CCTV).
Zhou's comments are in response to speculation by some media outlets that the
central bank may raise lending and deposit rates due to increasing pork and egg
"We paid attention the increasing price of pork," Zhou said yesterday, noting
that food prices have a heavy impact on the CPI, the May figures of which are
due to be announced early next week.
Statistics from the Ministry of Commerce showed wholesale pork prices in 36 major
Chinese cities in early May climbed 43 percent from a year earlier. Egg prices
rose 31.6 percent year on year.
Other statistics reflect the trend of rapid economic growth.
China's urban fixed asset investment grew 29.6 percent in the first four
months of 2007, compared to the same period a year earlier, according to the National Development and Reform Commission (NDRC), China¡¯s top
Property prices in China's 70 major cities rose 5.4 percent in April from the
same month last year, slowing slightly from March's 5.9 percent rise, NDRC
major cities continued to post large gains in April, with residential property
rising 12.8 percent in Shenzhen and 9.4 percent in Beijing. Residential property
prices rose 12.6 percent in Shenzhen and 9.0 percent in Beijing in the first
The CPI rose 3.3 percent in March and 3 percent in April, reaching the 3
percent benchmark that had been set by the central bank.
The People's Bank of China last month raised the key one-year deposit rate
by 0.27 percentage points to just above April's inflation rate of 3 percent.
The central bank has already raised interest rates twice this year and five
times required commercial banks to set aside more money as reserves to cool
inflation, fixed-asset investment and stock market
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