What’s the trend of 2010’s monetary policy, complicated?
Zhou Xiaochuan, central bank leader, explained at the Press Conference of the 11th NPC, the monetary policy in 2010 and other questions, such as yuan’s rate that concerns much to the people, when pointing out the “complexity in three aspects”.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
A. Zhou indicates the macroeconomic policy, when citing Premier Wen’s words, “a rather complicated process”. Although ensuring growth is quite clear as all experts agreed, yet there will see so many uncertainties in future economic development, for the affection of the financial crisis still appears serious, despite of the dawn of recovery.
B. It’s uncertain in balance of even growth and preventing inflations, under the combined principles of moderate policy and the controls on inflation expectation. The problem remains it’s rather difficult at the beginning of the year to foresee what to happen to the end, so dynamic adjustment should be conducted in line with concurrent indicators.
C.The yuan’s rate has been fully explained in regard of the mechanism and the price, to spell out the complexity thereof, involving (a) yuan’s rate mechanism should be adapted to the process of the reform, in line with socialist open market economy, and should follow the steps of globalization; (b) the changes are allowed for the yuan at different stages, which could conforming either with the overall economic growth or with timely adjustment; (c) yuan’s rate system is based on requirements of China’s realities and economic reform, needing further improvement to keep stabled position.
