Can a quarterly data is expected to ease the crunch
Can a quarterly data is expected to ease the crunch
National Bureau of Statistics recently released data from the first quarter consumer price (CPI) rose 2.2% in March CPI rose 2.4%. Fudan University, Director of Finance and Capital Research Center, said Hsieh 3, in the current CPI data, based on possible rate hikes, there is no need to raise interest rates. But the deposit reserve ratio may be raised again.
Hsieh said on March CPI based on the first two months of falling, but in the first quarter consumer price (CPI) rose 2.2%, the data is low inflation, the figures are even lower than 2.25% of the one-year bank rate. Based on the current CPI can not raise interest rates, there is no need to raise interest rates.
Li Thunder that the severe drought and earthquakes would not generate expected future prices push up the role because, at the moment, this effect is localized, such as Southwest are not major grain-producing provinces, and earthquakes of area is localized.
Speaking on the expected rate hike, Li Thunder, said the economic development of the current situation, the recent rate hikes are not necessary. This is mainly because of economic growth in the first quarter of the high points after three quarters of a gradual drop. Since it is high, so if interest rates may cause the next three quarters of the greater economic downturn, so the economy would be difficult to run smoothly.
Le vote in private that, CPI inflation is expected to increase as scheduled show a more moderate decline. Take into account in March of domestic credit and M2 growth were added down there, and in March the central bank significantly increased the intensity of the open market return, and shows that the current central bank more control through the open market. Therefore, in the first quarter price data will help ease the short-term interest rate expectations, and to promote the stock market reversed its downward trend.
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