Beijing confirms tighter monetary policy next year
6 December 2007
China will significantly tighten monetary policy next year, confirming wide speculation about the outcome of a high-level meeting that ended yesterday, the Wall Street Journal reported. Monetary policy for 2008 was described by the central bank and the National Development and Reform Commission as "tight," a tougher stance than the previous "stable-to-tight" policy that was adopted in the middle of this year. Earlier, monetary policy had been described as "stable." The announcement came at the end of the annual Central Economic Work Conference, chaired by President Hu Jintao. Officials did not give details on how the new policy would be implemented. The tightening is believed to be caused by officials' fear of rising inflation.