{"id":26309,"date":"2012-01-01T14:03:00","date_gmt":"2012-01-01T19:03:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2012\/01\/01\/chinese-leaders-comment-on-2012-monetary-policy\/"},"modified":"2012-01-01T14:03:00","modified_gmt":"2012-01-01T19:03:00","slug":"chinese-leaders-comment-on-2012-monetary-policy","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2012\/01\/01\/chinese-leaders-comment-on-2012-monetary-policy\/","title":{"rendered":"Chinese Leaders Comment on 2012 Monetary Policy"},"content":{"rendered":"<p>Top Chinese officials have recently made public comments on the direction of monetary policy in China for 2012. &nbsp;China&#8217;s President, <a href=\"http:\/\/www.chinadaily.com.cn\/usa\/china\/2011-12\/31\/content_14366674.htm\">Hu Jintao<\/a>, said in his New Year speech: &#8220;We will continue to properly deal with the relationship among maintaining a stable and relatively fast economic growth, adjusting economic structure and managing inflation expectations.&#8221; &nbsp;Meanwhile, People&#8217;s Bank of China Governor, <a href=\"http:\/\/www.chinadaily.com.cn\/usa\/business\/2011-12\/31\/content_14365450.htm\">Zhou Xiaochuan<\/a> said the PBOC &#8220;will continue the prudent monetary policy and maintain the continuity and stability of its policies.&#8221;<\/p>\n<div><a name='more'><\/a><\/div>\n<div>The People&#8217;s Bank of China raised <a href=\"http:\/\/www.centralbanknews.info\/p\/interest-rates.html\">interest rates<\/a> a total 75 basis points last year, and the required reserve ratio (RRR) by 300 basis points in the first half of the year, with one <a href=\"http:\/\/www.centralbanknews.info\/2011\/11\/peoples-bank-of-china-drops-rrr-50bps.html\">50 basis point reduction<\/a> in the RRR in December. &nbsp;At the PBOC&#8217;s fourth quarterly <a href=\"http:\/\/www.pbc.gov.cn\/publish\/goutongjiaoliu\/524\/2011\/20111231160447498684406\/20111231160447498684406_.html\">monetary policy committee meeting<\/a>, the committee&nbsp;emphasized&nbsp;recent domestic and international economic developments and their impact on continued implementation of prudent monetary policy, and the use of counter-cyclical monetary policy and macro-prudential tools.<\/p>\n<div><\/div>\n<div>Also, in acknowledgement to signs of stress in the domestic economy, such as social finance, local government debt, and falling house prices, Zhou Xiaochuan said:&nbsp;&#8220;Systematic financial risks will be effectively prevented to promote the healthy and fast development of the national economy,&#8221;. &nbsp;The PBOC governor also noted &#8220;while keeping a reasonable social financing growth, the bank will also optimize the lending structure, deepen financial reforms and improve foreign exchange management.&#8221;<\/div>\n<div><\/div>\n<div>On the numbers, China has seen annual CPI inflation fall from a high of 6.5% in July 2011, to as low as 4.2% in November. &nbsp;Meanwhile GDP growth slowed to 9.1% in the September quarter, from 9.7% in the March quarter; most commentators expect the Chinese economy to grow about 8% in 2012. &nbsp;The Chinese Yuan (CNY) has appreciated by about 4.5% in 2011 against the US dollar, with the USDCNY exchange rate now trading around 6.30.<\/div>\n<div><\/div>\n<div><a href=\"http:\/\/www.centralbanknews.info\/\">www.CentralBankNews.info<\/a><\/div>\n<\/div>\n<div><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" src=\"https:\/\/blogger.googleusercontent.com\/tracker\/8290544642025682538-6165982587395402937?l=www.centralbanknews.info\" alt=\"\" \/><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top Chinese officials have recently made public comments on the direction of monetary policy in China for 2012. &nbsp;China&#8217;s President, Hu Jintao, said in his New Year speech: &#8220;We will continue to properly deal with the relationship among maintaining a stable and relatively fast economic growth, adjusting economic structure and managing inflation expectations.&#8221; &nbsp;Meanwhile, People&#8217;s &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2012\/01\/01\/chinese-leaders-comment-on-2012-monetary-policy\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Chinese Leaders Comment on 2012 Monetary Policy&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-26309","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/26309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=26309"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/26309\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=26309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=26309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=26309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}