China will step up efforts against the rising inflation in the country. The head of China's central bank said the price increases will brake several measures.China fears social unrest if prices continue to rise strongly.
The head of China's central bank,Chinese currency more flexible to handle said on Saturday his intention to continue to curb inflation in China rising fast. He added, however. interest rates should not be increased greatly in order to attract speculative capital no.
On the verge of international economic and financial forum on the southern Chinese island of Hainan central bank chief said that the exchange rate should the Chinese currency yuan will continue flexible. This could, according to analysts, inflation slowed and the domestic consumption will be boosted if the yuan to appreciate in value and imported goods were so cheap. Western countries have repeatedly accused China of keeping the value of the yuan artificially low to promote national exports.Interest rates have increased four times
On Friday, Chinese authorities had reported that consumer prices in March had risen so quickly has not done since July 2008. Inflation was 5.4 percent, the government has targeted for the current year only 4 percent.
Fearing social unrest because of rising prices, the Chinese leadership since October has already raised interest rates four times and asked the banks to lend less money, and instead create more reserves.