Central bank: price performance remains stabler
(Xinhua)
Updated: 2004-09-21 09:45

"The price performance in China remains stable on the whole," said Governor of the People's Bank of China Zhou Xiaochuan on Sunday.

Zhou made the remarks in response to a reporter's queries after addressing the first summit of the World Industries and Commercial Organization, but declined to give any specific details in this respect.

Zhou said earlier this month that whether the central bank initiated its first interest rate increase in nine years rest with the macro-economic figures in August.

According to official statistics, China's Consumer Price Index (CPI), the key barometer indicating the inflation rate, grew 5.3 percent year-on-year in August, leveling with the preceding month and staying very close to the current lending rate 5.31 percent.

The year-on-year growth rate for urban fixed asset investment was 30.3 percent from January to August, down 0.7 percentage points compared to that of the first seven months of the year.

"The central bank would be under more pressure on interest rates if the investment growth last month went a bit higher," noted analysts, who are closely seeking for hints of a possible hike in interest rates.

In his speech at the summit, Zhou called on China's financial institutions to further improve their corporate governance, reported Economic Daily on Monday.

China should strive to lift the status of large institutional investors in governing the companies, and address the problems that most large enterprises are controlled by the state, said Zhou.

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