The Straits Times
www.straitstimes.com
Published on Oct 14, 2012
 

China's central bank focused on inflation before growth

 
 

TOKYO (AFP) - China's deputy chief central banker said on Sunday his top priority was to control inflation, despite calls by developed economies to ramp up consumer demand and domestic pressure to chase growth.

"(To) control inflation is our No. 1 job. As a central banker, we have to control inflation," Mr Yi Gang, deputy governor of the People's Bank of China, told delegates to the annual meetings of the International Monetary Fund and the World Bank in Tokyo.

Mr Yi stepped in to deliver the speech when his boss, bank governor Zhou Xiaochuan pulled out. He and Finance Minister Xie Xuren stayed away as part of what observers said was a protest over a territorial row with Japan.

"Leaders of local governments are eager to develop the economy in their regions. So everybody is enthusiastic about development and they want investment, they want to have FDI (foreign direct investment). Desire for higher growth is all over the country," he said.