Market price is decisive to add interest rate: Zhou Xiaochuan

The head of the People’s Bank of China, Zhou Xiaochuan said on 14 the present market price has shown a little higher but not serious in the least, as compared to the foresee by the central bank, so the monetary policy could be implemented as is planned.  In view of rate up, it might depend on the prediction over the ongoing of market price. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

When replying China Securities Journal’s questions, Zhou said the figure of inflations was quite related to rate ups, hence, the central bank has given concerns either to CPI or to PPI.

But in the perspective of central bank, a predicted figure other than CPI is required to decide adding rate or not, as well as to verify money supply, because of one year lading effective existed over the revising of money policy. In addition, the comparison amid the prediction and the real development will also take into account with rate adding. The present figure shows it is little higher of market piece than the expectation, which is unaccountable to follow the planned money policy.

Zhou indicated it was improper to have remarks now on the detailed measures of rate adding, when answering the question of “if to raise rate the first half-year”.