Central bank to try to rein in credit growth
(Reuters)
Updated: 2006-05-22 08:45 China's central bank will try
to rein in rapid credit growth and look to fine-tune policy by using a number of
tools including an adjustment to bank reserve requirements, it said in comments
published over the weekend.
In excerpts from its 2005 annual report, it also said it would continue to
push reforms of its exchange rate and keep the yuan basically stable, the
official China Securities Journal said in a reiteration of long-standing policy.
The central bank also outlined a number of economic risks including the
possibility that fixed-asset investment could rebound and that prices would be
influenced by both overcapacity in certain industries and energy price reforms.
Prices in China would be subject to both inflationary and deflationary
pressures, the paper cited the report as saying.
It also saw the potential for bad loans to swell and for financial risks to
grow, it said.
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