BOC: More macro controls in second half of 2007
12 July 2007
Most macroeconomic indicators pointed to continued rapid growth during the first half of this year, according to a monthly monetary market report by Bank of China. The report said more macroeconomic controls may be expected in the second half of the year, including interest rate hikes and cancellation or reduction of the interest tax, to curb apparent economic overheating. Statistics show China's GDP is likely to by 11.3% this year, beyond the central bank's expectation of 11%, according to Shanghai Securities News (in Chinese). The report also said increases in the price of agricultural products, rebounding oil prices, resource price adjustment and the "wealth effect" of the stock market are likely the major pressures causing the consumer price index (CPI) to reach 4% in June.
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