The People's Bank of China (PBOC), or the central bank, reiterated Thursday that it would give higher priority to stabilizing prices this year.

The central bank plans to make its micro-control policies more targeted and effectively manage liquidity to bring the monetary conditions for price hikes under control, said the PBOC in a statement posted on its website.

It also stressed that it would employ multiple financial tools, including interest rates, the required reserve ratio, and open market operations, to maintain liquidity within the nation's banking system at a proper level, according to the statement.

Further, the central bank vowed to implement a prudent monetary policy and steer credit growth back to normal.

China faces mounting inflation pressures with the November consumer price index (CPI) renewing a 28-month high of 5.1 percent, while new loans reached 7.45 trillion yuan in the first 11 months of this year, compared to the government's full-year target of 7.5 trillion yuan.

Also, the central bank announced, for the second time in 2010, a hike in interest rates late December. It had also increased the bank reserve required ratio six times last year to 18.5 percent and 19 percent for some large commercial banks, to battle surging prices.


Curbing inflation high on China's economic agenda in 2011

BEIJING, Jan. 3 (Xinhua) -- Chinese President Hu Jintao, in a recent speech made while celebrating the New Year with political advisors, reiterated China's stepped-up efforts to stabilize prices in 2011.

A week earlier, Chinese Premier Wen Jiabao, in a live chat over radio with listeners on Dec. 26, was seeking public confidence in his government's ability to contain inflation in the world's second largest economy.   Full story

China's Central bank targets inflation

BEIJING, Dec. 28 (Xinhuanet) -- Unexpected increase in interest rate should help contain the soaring prices and real estate bubble in the new year.

The latest interest rate hike announced by the People's Bank of China highlighted the government's grave concern over soaring prices and its determination to contain the real estate bubble.   Full story

Source: Xinhua