CHINA could raise consumer price index (CPI) growth target for 2011 to 4 percent on its Central Economic Work Conference that would be held at the end of this year, higher than the 3 percent CPI growth target for this year, according to a China Business News report yesterday.
The report quoted an unnamed policy adviser as saying yesterday.
The report said the Central Government could adopt a prudent monetary policy in 2011, a change from the moderately loose one which had been implemented during the past two years.
Separately, a senior researcher at a State think tank said in a commentary published in China Securities Journal that inflationary pressures would likely remain high in the first half of next year.
Inflation could be above 5 percent in the first few months of 2011, said Liu Yuhui of the Chinese Academy of Social Sciences.
Many financial institutions also increased China s CPI target prediction for 2011 to above 4 percent. UBS raised China s 2011 CPI target to 4-4.5 percent from previous forecast of 3.5-4 percent. Standard Chartered Bank raised the target to 5.5 percent from its previous prediction of 4 percent.
China s central bank Nov. 19 announced to raise the reserve requirement ratio (RRR) by 50 basis points to curb inflation and guard against the capital inflows resultant from the quantitative easing monetary policies adopted by developed economies. It s the fifth time for the central bank to raise the RRR this year and the second in the month.(SD-Agencies)
