The central bank released the report: anti-deflation monetary policy in recent anti-inflation far

Yesterday, the central bank issued the "2008 third quarter monetary policy report on the implementation of the" pointed out that the monetary policy to prevent deflation in the near future, because a lot of liquidity into the economy may turn for the better into inflationary pressures, so to prevent long-term inflation .
 According to the report, from international and domestic cyclical trends, current inflation pressures to ease significantly.  On the one hand, as the financial sector to continue to leverage, producers and consumer confidence remains in the doldrums, the world's economic growth slowed down significantly, international commodity prices fell a trend in international oil prices fell below 60 U.S. dollars / barrel, copper, coal, as well as agricultural products , And other varieties of futures prices also fell sharply.  Affected by this, China's high import prices down, in the third quarter dropped 0.2 percent the previous quarter.

 In addition, the trend of China's economic growth slowed significantly, the first three quarters of GDP growth rate dropped 2.3 percentage points year-on-year, PPI also rose from the high dropped to 6.6 percent, while the CPI growth rate is 6 months in a row down.  The macro-economic climate index in the first index of consumer expectations index, the business climate index also showed a downward trend.

 The report said inflationary pressures to ease structural adjustment provided a window of time and space, therefore, can choose the right resources to promote the reform of the pricing mechanism and promote the optimization of economic structure and development patterns, in order to maintain long-term overall price level basically stable to lay the foundation.

 The report said that in such a macro-economic background, monetary policy to prevent deflation.  The central bank will implement appropriate monetary policy, the banking system to ensure an adequate supply of liquidity to maintain a reasonable growth of monetary credit and safeguard the monetary and financial stability, with the active financial policy coordination, actively support the expansion of domestic demand, increase financial support to economic growth.

 At the same time, but the report cautioned that the domestic labor supply may have been close to, "Lewis turning point" energy resource constraints of the conflict is growing more and more prominent, and labor costs, resources and energy prices is a long-term trend.  And in response to financial crisis, a growing number of international economies, the implementation of relatively easy monetary policy, a large number of injecting liquidity in the next economic upturn may be translated into inflationary pressures.  As a result, monetary policy as an important macro-economic policies, to prevent long-term inflation at the same time, we should strive to maintain currency stability, promoting economic growth.