China rate rises no panacea to curb inflation: PBOC adviser
Updated: 2010-11-18 11:06
China should not solely rely on interest rate rises to curb inflation, an academic adviser to the People's Bank of China said in remarks published on Thursday.
Zhou Qiren, who is also a professor at Peking University, said the government must take steps to tackle supply-side strains that have been a key factor pushing consumer prices.
Loose monetary policy in 2009 has created excessive liquidity and helped fuel prices of various products, he said.
Zhou warned that liquidity had been channeled from the real estate market to other sectors of the economy, after Beijing took harsh measures to prevent a property bubble.
China's CPI hit a 25-month high of 4.4 percent in October, fuelling expectations of further tightening measures.
The PBOC has ramped up its efforts to tighten monetary conditions in the past month, increasing bank reserve requirements and surprising markets on Oct 19 by announcing the first rate rise in nearly three years.
Wimbledon semifinalist Li Na led host China to capture the team tennis title on Tuesday at the Asian Games, accomplishing her Asiad tour with three consecutive victories.
Born into a family of doctors, Maxime became interested in Traditional Chinese Medicine (TCM) at the age of 12, after hearing about TCM theories such as health preservation and recuperation.
Acupuncture and Peking Opera have been selected as candidates for UNESCO intangible cultural heritage status.
A groom carries his bride from a wedding coach in Xuchang, Henan province, Nov 11, 2010. Produced a local factory, various original hand-made wedding carriages were displayed on the streets, attracting young people chasing fashion and an environment-friendly lifestyle.