The People’s Bank of China (PBoC) will continue to increase interest rates and bank reserve requirement ratios until it sees three consecutive months of decline or stability in consumer prices, Reuters reported, citing a statement by an unnamed PBoC official. The official said it would do so regardless of the rising difficulties smaller Chinese firms are having finding financing. He said new loans in the first four months of this year were down 10% year-on-year. Economists expect statistics to show that China’s consumer inflation growth slowed in April to 5.2%, down from 5.4% in March. The National Bureau of Statistics will release the most recent set of indicators on Wednesday.
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