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Official reaffirms curbing inflation a priority after Olympics

(Xinhua)
Updated: 2008-08-27 23:02

Tasks for the rest of the year included improving the contribution of domestic consumption to economic growth, boosting agricultural output and increasing aid to small enterprises, he said.

Related readings:  Nation's inflation due to economic structure  Inflation concerns hit futures  China's inflation likely to cool off  Govt think tank wants inflation target to be raised to 5-7%

The government had been focusing on preventing the economy from overheating before changing the goal to "keeping steady, rapid growth" in July.

Many analysts foresaw a loosening of the tight monetary policy to provide liquidity for enterprises, especially exporters, that were squeezed by weakening demand, credit controls and rising costs.

Earlier this month, administrators raised the export tax rebate rates for some textiles and garments, while the central bank allowed more credit to small and medium-sized enterprises.

"The fiscal and monetary policies are likely to be eased, if the current trend is a guide," said CITIC Securities analyst Zhu Jianfang. "The central bank is not expected to come up with any big tightening moves after the Olympics."

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