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China to “fine-tune” monetary policies – China Vice Finance Minister

By   || May 3, 2010 at 05:35 GMT
|| 4 comments || Add comment

China’s Vice Finance Minister Li Yong says China’s latest hike in the proportion of deposits that banks must keep in reserve is intended to manage liquidity and inflation expectations.  China will stick to “approxiametely easy” monetary policy, but the minister warned that overly strong bank lending would lead to upward pressure on inflation and asset prices.

Regarding the yuan, the official said the government wants to keep the currency stable but is also continuing with reform of the “exchange rate formation mechanism.” 

 Guess we shouldn’t expect any appreciable revaluation of the yuan anytime soon.

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4 Responses to “China to “fine-tune” monetary policies – China Vice Finance Minister”

  1. 50%PerWeek on May 3rd, 2010 05:52 GMT

    One less *WTF just happened!!!* event to take out of the equation I guess…..very well

  2. George on May 3rd, 2010 06:31 GMT

    JPY crosses will have short covering with this news probably !!

  3. Annie on May 3rd, 2010 06:38 GMT

    I’m taking a break for a few hours . Keep it going George

  4. ForexLive European Morning Wrap: Was there a public holiday somewhere? | ForexLive on May 3rd, 2010 11:13 GMT

    [...] China Vice FinMin: China to “fine-tune” monetary policies [...]

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