PBOC Says China Shouldn’t Be ‘Blindly Optimistic’ on Prices

China can’t be “blindly optimistic” about the outlook for inflation at a time when uncertainties remain in areas such as property and farm-produce prices, the central bank said.

China will continue to pursue a prudent monetary policy to keep prices stable, the People’s Bank of China said in its first-quarter monetary policy implementation report. It will also push forward with interest-rate liberalization and changes to the way the yuan’s exchange rate is set, according to the report issued late yesterday.