¡¡BEIJING, Feb. 21 (Xinhuanet) -- The current domestic situation is conducive to the stable and healthy development of China's economy,the People's Bank of China (PBoC), the central bank, said on Tuesday.

    This is the first year of China's 11th Five-Year Development Program period, as well as the last year of China's interim periodafter joining the World Trade Organization (WTO), said the bank ina report on monetary policy.

    The income of urban and rural people is growing rapidly, which will stimulate consumption, said the report.

    The confidence index of urban residents about their future income grew 1.2 percent in the fourth quarter of 2005, according to a survey by the central bank.

    Although the problem of excess supply exists in many fields, the fixed assets investment in China is still likely to rebound, so uncertainties still lie in investment, the report said, recommending the adjustment of investment structure.

    The world's economy will continue to grow stably, benefiting Chinese exports, which will still face risks including oil price hikes and increasing trade protectionism, it said.

    Some in-depth problems in economic operation have not been fundamentally solved, it said, suggesting the country should not rely too much upon investment and export growth. It should also avoid traditional economic methods which trigger serious pollutionand enormous energy consumption but only generate low profit.

    By the end of 2006, China will fully open its financial marketsaccording to its promise to the WTO, which will bring challenges to domestic financial companies, it said. Enditem