China to tighten monetary policy to control inflation

[CHIMO]

China is to embrace a more "prudent" monetary policy next year in an attempt to keep tighter control on inflation.

The Chinese government announced earlier today that it will tighten its current "moderately loose" stance in 2011, following a meeting of the Communist party's politburo.

Xinhua, the official news agency, reported that the politburo had agreed to "implement an active fiscal policy and a prudent monetary policy, to increase the focus, flexibility and effectiveness of macro-economic adjustments".

It also quoted Chinese president Hu Jintao warning his colleagues to be "more active in dealing with the relationship between stable economic growth, adjusting the economic structure and managing forecasted inflation".

http://www.guardian.co.uk/business/2010/dec/03/china-tighten-monetary-policy-inflation

[roamer65]

1. We're exporting our price inflation to China.

If China really wants to stop the inflation problem, they will break the currency peg. Otherwise its all just "noise".

[Yo_Mama]

2. China has already done this

They raised bank reserve ratios twice in a month.

Here's the reason (National Bureau of Statistics of China):
http://www.stats.gov.cn/english/
Look at the 50-city food prices, last two releases.