(Finance) – The governor of the People’s Bank of China (PBOC), Pan Gongshengconfirmed the validity of the current monetary policy strategy, confirming that it will be kept accommodative, even if inflation has hit bottom and will recover in the coming months.
The governor also confirmed that the Chinese economy has gained momentum in recent months and has moved closer to the official growth target, set by Beijing at 5% for this year.
“Over the past year, many central bankers around the world have been concerned about the problem of persistently high inflation, but for China the problem is a little different,” Pan said, adding “it is likely that the inflation in China will increase in the coming months as the recent drops in food prices, and in particular pork prices, will not be sustainable.”
The number one of the PBOC then made a commitment to strengthen dialogue and communication on global politics and stated that China will simplify the entry of foreign financial institutions who want to invest in the country.