. Medical and Hospital News .




.
POLITICAL ECONOMY
China to ease policy as economy slows: Xinhua
by Staff Writers
Shanghai (AFP) April 19, 2012


China will ease monetary policy and boost liquidity in the financial system with a series of measures, state media cited a central bank official as saying, in a bid to avoid a sharp economic slowdown.

The official Xinhua news agency quoted an unnamed official at the People's Bank of China as saying it planned to "steadily" introduce the measures, including cutting the amount of cash lenders must keep in reserve.

The report, published late Wednesday, comes as the world's number two economy eases, with data last week showing it grew at its slowest pace for almost three years in the January-March quarter, while manufacturing stutters.

As well as easing reserve requirements, the central bank will also boost liquidity through its open market operations -- referring to its sale or purchase of securities, which influences the volume of money and credit in the economy.

"The central bank will continue to implement a prudent monetary policy... and maintain a reasonable level of interbank liquidity to facilitate a stable and relatively rapid development of the national economy," the official said.

China will "fine-tune" its monetary policy to allow more growth in bank lending, the official added in the report, reiterating remarks by other officials about the need to adjust money policy.

A spokesman for the central bank declined to comment on the report.

The bank has already cut bank reserve requirements twice since December last year, as policymakers look to get money through to the small businesses and the agricultural sector that play a crucial role in the economy.

Chinese banks have already ramped up lending, issuing 1.01 trillion yuan ($160.3 billion) in new loans in March, higher than the 710.7 billion yuan recorded in February, figures showed last week.

Investors have been waiting for Beijing to announce measures to ease monetary policy for several weeks as figures show manufacturing activity almost dormant, while in February the country posted its biggest trade deficit in more than a decade.

Official data on Friday showed the economy grew just 8.1 percent in the first three months of the year -- well below the 8.9 percent recorded in the last quarter of 2011 -- marking the fifth consecutive quarterly slowdown.

"The current situation has provided the conditions to lower reserve requirements, chiefly lower-than-expected economic growth," Liao Qun, chief China economist for Citic Bank International in Hong Kong, told AFP.

Analysts widely expect China to move again to trim reserve requirements for commercial banks, with some predicting the government might even cut interest rates to kick-start the economy.

"The impact of lowering rates would be a bit bigger, so they will consider it in the second half," Liao said.

British banking giant HSBC expects reserve requirement cuts of one percentage point and more capital injection through open market operations in the April-June period, it said in a research report last week.

Analysts also say lower inflation has given the government more room to ease monetary policy. China's inflation rate hit 3.6 percent in March from 3.2 percent in February, but was still down from a peak of 6.5 percent seen in July.

Related Links
The Economy




.
.
Get Our Free Newsletters Via Email
...
Buy Advertising Editorial Enquiries




.

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle



POLITICAL ECONOMY
Wen says China to 'firmly support' efforts to maintain euro
Beijing (AFP) April 19, 2012
China will firmly support efforts to maintain the stability of the euro and the European economy, Premier Wen Jiabao told German Chancellor Angela Merkel Wednesday, state media said. In a telephone conversation with Merkel on the European debt crisis, Wen said China had always had confidence in Europe's economy and the stability of the single currency, Xinhua news agency reported. "The e ... read more


POLITICAL ECONOMY
Desolation of Pakistan avalanche site

Lawyer to take over at Fukushima plant operator

Toxic gases hamper search at Pakistan avalanche site

New underwater images show damage at Fukushima

POLITICAL ECONOMY
Russia to Test Second Glonass-K Satellite in 2013

Lockheed Martin and Raytheon Complete Major GPS Integration Milestone

New Technology Tracks Sparrow Migration for First Time from California to Alaska

Galileo satellites intensify competition on the market of navigation

POLITICAL ECONOMY
New study explores what the evolution of names reveals about China

Excessive worrying may have co-evolved with intelligence

Fine-scale analysis of the human brain yields insight into its distinctive composition

Chinese-Brazilian superkid insists he's no 'genius'

POLITICAL ECONOMY
Spanish king sorry after Africa hunting trip

New study traces the evolutionary history of what mammals eat

Possum pest feeds thriving fur industry in New Zealand

China 'river pig' deaths raise extinction fears

POLITICAL ECONOMY
China reports bird flu outbreak

Anti-AIDS pill makes cash sense for some gays: study

Emergence of artemisinin-resistance on Thai-Myanmar border raises specter of untreatable malaria

Researchers Use Game to Change How Scientists Study Disease Outbreaks

POLITICAL ECONOMY
'We are the serfs': Chinese debate Bo Xilai saga

Hong Kong's next leader to ban mainland babies

US calls for release of China rights defender

China's Ai Weiwei sues tax bureau after huge fine

POLITICAL ECONOMY
War planes strike suspected Somali pirate base: coastguard

India proposes norms for Indian Ocean anti-piracy patrols

Iran navy rescues China crew from hijacked freighter

Drones will seek pirates at sea

POLITICAL ECONOMY
Microsoft beats expectations despite profit dip

Wen says China to 'firmly support' efforts to maintain euro

Lagarde assures IMF able to boost crisis funds

China to ease policy as economy slows: Xinhua


Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

.

The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement