Friday, June 17, 2011

Qu Hongbin, chief economist from HSBC China

Inflation pressure is likely to rise in the coming months, with CPI in June possibly hitting as high as 6%.
Despite various uncertainties, monetary tightening economic polices have started to show an effect, along with the slowdown of the money supply and credit growth, and with a drop in market demand and export growth, inflation is expected to peak in the coming month.
Since inflation remains the focus, monetary-tightening policies will be maintained. The central bank is likely to add 25 basis points in interest rates and 100 basic points in reserve requirement ratio.

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