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Wen Jiabao: China to maintain focus on taming inflation

China’s Premier Wen Jiabao said that China’s top priority is stabilizing prices and that there is no plan to significantly modify current economic policies, Bloomberg reported. In an article in Qiushi, the Chinese Communist Party’s magazine, Wen wrote that the slowdown in the Chinese economy is within government expectations. Analysts cut growth forecasts for China last month due to continued weakness in the US and Europe, which threatens China’s export trade. At the same time, interest rate hikes and other policy curbs on property purchases have slowed demand. “We need to bring down the pace of price increases without causing large fluctuations in the economic growth rate,” Wen wrote in the article. The assessment was bolstered by Thursday’s strong PMI reading.

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