With U.S. economic stimulus measures faltering, and Greece’s financial crisis threatening Europe’s recovery, hopes for global growth have centered on China.
But inflationary pressures there have raised fears that it will have to deliberately slow down its growth to curb inflation.
However, Chinese Premier Wen Jiabao is confident his nation has inflation under control.
Writing in the Financial Times Friday Wen said “The overall price level is within a controllable range and is expected to drop steadily.” The premier added “We are fully capable of sustaining steady and fast economic growth.” See original column here.
China has raised target interest rates and reserve ratios several times in the past 18 months as the nation’s economic growth has surged.
