Economy

Central bank keeps watch on prices, liquidity

(Xinhua)
Updated: 2010-11-29 16:40

BEIJING - China's central bank has been keeping a close watch on prices, market liquidity and economic growth and has taken "responsive measures" in accordance with market changes, Ma Delun, deputy governor of the People's Bank of China, said Monday.

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Such measures included an interest rate rise last month, two increases to the reserve requirement ratio this month as well as other open market operations, designed to curb excessively fast money supply and rising prices, Ma said.

The moves are "conducive to guide public and market expectations," he added.

China's consumer price index (CPI), the key gauge of inflation, rose to a 25-month high of 4.4 percent year on year in October.

Ma also said the central bank will keep the currency yuan "basically stable" to promote continuous growth of the country's economy.