The Best of Chinese Commentators

The course of monetary tightening

  • Published 04 Mar 2010

How far will Beijing go to forestall economic overheating?

Pan Xiangdong, chief macro analyst of Everbright Securities, is predicting that first quarter gross domestic product growth of 10-11% and consumer price index rates as high as 2% in March and April will trigger further credit tightening measures. The People's Bank of China (PBoC) will choose raising the reserve requirement ratio (RRR) over raising benchmark interest rates to cool growth, he said.