Economy

China to keep high alert for inflation risks

(Xinhua)
Updated: 2010-11-09 22:03

BEIJING - China will maintain a high alert for inflation risks and will not leave inflation unchecked, Ma Delun, deputy governor with the People's Bank of China, or the central bank, said Tuesday.

Related readings:  Oct consumer confidence falls due to inflation, rate hike  Food prices fuel inflation concerns  Mainland stocks fall on concerns over inflation  Farm produce prices higher amid inflation concern

The central bank will closely watch the market and carry out open market operations to reach the goals set for the currency policies, Ma said at a forum held in Beijing.

Every country should weigh the impact of its economic policies and coordinate the short-term and long-term interest against a backdrop of global imbalance, said Ma.

The US Federal Reserve announced on Nov 3 its $600 billion quantitative easing decision to purchase treasury bonds, sparking excessive liquidity concerns, especially within the emerging economies.

Zhou Xiaochuan, governor of the People's Bank of China, said on Nov 5 that Chinese regulators would work to prevent abnormal capital inflows by bolstering foreign exchange controls and maintaining overall liquidity at a proper level.