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Chinanews, Beijing, April 10 - According to a report by Beijing Times, Yi Gang, assistant governor of the People's Bank of China (PBC), said that due to the imbalance of payment, and the rising fixed investments and monetary credit, China should still be aware of possible inflation.
This is the second time for Chinese officials to openly comment on financial problems this year.
Some 2 months ago, when there was expected to be an interest rate hike, Yi said that the PBC was planning to raise interest rate, and 32 days later, the interest rates for deposits and loans were both raised by 0.27%.
Based on publicized data, the fast-growing payment in the first two months of 2007 has already laid the foundation for inflation. The monthly growth of CPI in those two months was 2.2% and 2.7% respectively, higher than the international warning line of 2%.
"China will enhance the management of liquidity in the future," said Yi
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