China’s ‘Hawkish’ Central Bank May Tighten Even as Economic Growth Cools

From bloomberg.com

China’s central bank said taming inflation is its top priority, signaling that more tightening is possible even after a manufacturing survey showed that growth may be moderating in Asia’s biggest economy. “Stabilizing prices and managing inflation expectations are critical,” the People’s Bank of China said in a first- quarter monetary policy report published yesterday. Bank reserve requirements have no “absolute ceiling,” the report said, restating Governor Zhou Xiaochuan’s comment on April 16. A manufacturing index slid in April from March after increases in bank reserve requirements and interest ... (full story)