Wen: China will adjust economic policy

Chinese premier Wen Jiabao announced that officials would make adjustments to maintain a “reasonable” growth in money supply, at a “suitable time and by an appropriate degree,” Bloomberg reported. During a visit to Tianjin on Tuesday, Wen also highlighted tackling inflation as a top priority. Interest rates haven’t risen since July, but the preceding 12 months saw five rate hikes aimed at curbing inflation. The statement may indicate a relaxation in credit controls imposed by the central bank earlier this year, according to some analysts. Inflation in China has slowed from a three-year high of 6.5% in July to 6.1% in September. Wen indicated continued support for price controls and surveillance to ensure food supply. Public funds should focus on raising living standards, and new policies should support small companies, he added. China’s GDP grew 9.1% year-on-year in the third quarter, the lowest in two years.