Source: CCTV.com

11-10-2008 11:42

Special Report:   Global Financial Crisis

The stimulus package could result in a larger money supply, more liquidity and lower interest rates. This was according to Central Bank Governor Zhou Xiaochuan.

The stimulus package could result in a larger money supply, more liquidity and lower interest rates.

Zhou said the government shifted to a "moderately easy" monetary policy stance, because inflation had been dropping very fast. He also said China launched its massive stimulus package to prevent an excessive impact from the unwinding global financial crisis. Following Group of 20 meetings that closed on Sunday in Brazil, he said the "easy" monetary policy could lead to a bigger money supply and more liquidity.

China's annual producer price Index or PPI fell sharply to 6.6 percent in October from 9.1 percent in September. It is also a second consecutive monthly drop since the headline figure peaked 10.1 percent in August.

 

Editor:Xiong Qu