China Central Bank to Control Price Hikes

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June 16 – China’s central bank announced that it would employ aggressive means to control price hikes and improve monitoring of cross-border capital flows.

In a report that reviewed last year’s financial performance, the People’s Bank of China said it will enhance the assets market and try to severe fluctuation of asset prices.

The central bank also promised to monitor the international financial movement to prevent spreading risks in local markets.

Analysts have raised concern on the country’s developing capital markets and rising inflation. Last week, the stock market closed at a 15-month low.

China’s consumer price index dipped to 7.7 percent year-on-year in May, down from 8.5 percent in April. On the other hand, money supply growth increased by 18.07 percent compared to last year’s figure from 16.94 percent in April.