BEIJING, Nov. 3 (Xinhua) -- China should pursue a
stable monetary policy in the face of risks from both inflation and falling
prices, as it is not urgent to cut interest rates, the China Securities Journal
quoted a former banker as saying on Monday.
Wu Xiaoling, former deputy governor of the People's
Bank of China, the country's central bank, said over the weekend that fiscal
policies and other policies were of more importance than monetary policies to
maintain the stability of the country's economy amid the current complicated
situation both at home and abroad.
To sustain the economy from the ongoing world
financial crisis, many nations have injected capital; China and other countries
have cut interest rates. As China's financial system remains stable, "to ensure
steady capital flow is all that matters", said Wu, who is now deputy director of
the Financial and Economic Affairs Committee of the National People's Congress,
China's top legislature.
She noted the country should rely more on fiscal
policies instead of monetary policies, as sufficient monetary policy adjustments
had already been made.
The country's central bank has cut interest rates
three times since September to stimulate the economy.
The State Council issued 10 policies in October to
buoy economic growth, such as tax exemption, mortgage deposits reduction and
others.
Several years of trade surplus has helped the country
accumulate huge amounts of inter-bank money in liquidity. The reserve of central
bank bills was valued at 4.8 trillion yuan (701.7 billion U.S. dollars) at the
end of September.
"China will not cut the reserve requirement ratio
until the influx of foreign currency reserves falls sharply", she said,
suggesting that a reduction in central bank bills should be considered first to
increase capital liquidity, if the influx of foreign capital was unstable.
The country's central bank announced on Oct. 29 that
it would issue one-year central bank bills every two weeks, a change from the
previous once a week. It was a move to stimulate commercial banks to actively
grant loans.
BEIJING, Nov. 2 (Xinhua) -- China's economy is
in good shape despite the changing economic environment, and it will maintain
stable and relatively fast growth, National Bureau of Statistics (NBS) chief Ma
Jiantang told Xinhua on Sunday.
"The fundamentals of China's economy remain unchanged
despite the changing world economic environment," the new NBS director said. "We
should be confident about the country's economic outlook." Full story
BEIJING, Nov. 2 (Xinhua) -- China's gross domestic product (GDP) growth is
expected to slow to 9.4 percent in 2008 from last year's 11.4 percent as the
shrinking exports will cool the world's fourth largest economy, according to a
Chinese credit rating agency report on Sunday.
The fundamentals of the economy are sound, but falling
export orders would take a toll on the national economy in the short term, and
domestic consumption needed time to play a bigger role, said the report released
by the China Chengxin International Credit Rating Co. (CCXI), a joint venture of
China's first rating agency China Chengxin Credit Management Co. Ltd. and
U.S.-based Moody's Corporation. Full story
BEIJING, Nov. 1 (Xinhua) -- In the space of a year, Yang
Chanjuan's career plan has changed direction. A soon-to-graduate college student
in economics, Yang is feeling her fortunes being buffeted by the financial
crisis.
Yang was recently told by her schoolmates already working
in the financial sector that their companies would cut staff, or there would no
bonus this year. Amid the turmoil and full of uncertainty, a job in banking or
securities company was no longer desirable to her. As a result, she decided to
apply for a government job. Full story
