Macro economy overheated
(Xinhua)
Updated: 2006-06-18 11:59
Latest survey by China's central bank shows that 42.6 percent of bankers in
the country believe that the macro economy is overheated, and 26.6 percent think
the situation will continue.
The People's Bank of China and the National
Bureau of Statistics quarterly send questionnaires to principals of all kinds of
banks including foreign-funded ones, asking them about impression upon the
current economic situation.
Some 42.6 percent of bankers think the macro
economy is overheated in the second quarter of this year, and 26.6 percent
predict such situation will continue in the next quarter, which is the maximum
ratio in history.
China's economy is facing heightened overheating signs,
as outstanding bank loans surged 15.97 percent year on year by the end of May
amid a seemingly unabated investment binge.
So as to cool down the
overheated economy, the People's Bank of China in April raised the minimum rate
commercial banks charge on one-year loans in local currency, the yuan, 27 basis
points, to 5.85 percent in an aggressive move to discourage lending. It was the
first increase since October 2004.
The survey, however, shows that 18.5
percent of bankers still think the current monetary policy is too mild and
further tightened policy may come out in the next quarter. This is also the
maximum ratio in history.
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