Inflation expectation presses for rate hike
Inflation expectation presses for rate hike
The possibility of an interest rates hike by China's central bank is imminent 1 as inflationary pressure prolongs and a "prudent 2" monetary 3 policy is in place, the China Securities Journal reported Friday.
China's National Statistics Bureau will release November's economic statistics this Saturday; market estimates the consumer price index (CPI) increase may hit this year's highest point, exceeding the October high of 4.4 percent.
Though the country's efforts to combat surging prices have seen some results, the inflationary pressure for 2011 is still considerable. Hongyuan Securities estimated the 2011 CPI may be four percent, with the highest monthly point hitting five percent.
Industry insiders said the expectation of a prolonged inflation may trigger interest rate hikes and the required reserve ratio may also be increased to freeze liquidity 4.
Sheng Hongqing, an analyst 5 at Everbright Bank, said the central bank may raise interest rates or the required reserve ratio before year's end. China raised the interest rates by 25 basis points in October -- the first time in nearly three years.
Beijing officially shifted its monetary policy stance from a moderately loose one to a prudent one on Dec 3 to tame rising inflation and head off asset bubbles.
- The black clounds show that a storm is imminent.乌云预示暴风雨即将来临。
- The country is in imminent danger.国难当头。
- A prudent traveller never disparages his own country.聪明的旅行者从不贬低自己的国家。
- You must school yourself to be modest and prudent.你要学会谦虚谨慎。
- The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
- Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。
- The bank has progressively increased its liquidity.银行逐渐地增加其流动资产。
- The demand for and the supply of credit is closely linked to changes in liquidity.信用的供求和流动资金的变化有密切关系。