CPI lower than expected monetary policy to maintain continuity

 Although the CPI lower than expected, but the analysis found, whether or chain-year, CPI is still at a high level, and the PPI up 6.6% of the rapid rise in risks to future inflation. All this shows that the central bank on February 9 the need to raise interest rates, inflation expectations and management's determination. The market expected the central bank will further control measures.

CITIC Securities chief economist Zhu Jian Fang believes that the show that both domestic and external demand is strong, if the policy tightening is not enough, the risk of overheating may occur. Meanwhile, the current level of interest rates lower than normal levels, with the normalization requirements.

macro strategist Shenghong Qing China Everbright Bank, that the current inflationary pressures still exist, the central bank to raise interest rates after the behavior is appropriate.

the next step for the central bank anti-inflation policy means interest rates are still expected in the general market.

Zhu Jian Fang believes that the future policy will be further contraction is expected to raise interest rates this year will be about 2 times, so that 1-year deposit rate to 3.50% or so, the next rate hike in early April may be the window.

Center for Financial Research Bank of the view that price pressures in the larger case, the future will continue to increase the benchmark interest rate, but interest rates will not may appear in the March -4 April.

of gold is that the first half of this year expected to raise interest rates 1, second half of the decline in inflationary pressures, interest rates also will reduce the pressure. In addition to raising interest rates, the RMB appreciation may as a policy tool to help control imported inflation.

central bank credit data released the same day, January new credit 1.04 trillion yuan, in line with market expectations; money supply (M2) growth rate of 17.2% year on year, increasing nearly 16% of the year objectives, sound monetary policy, central bank shows initial results.

Center for Financial Research is expected to cross the line, a quarter of the reserve ratio may rise again 1 to 2 times, each time by 0.5 percentage points, do not rule out that some banks may be differences in adjustment. Kim also believes in the central bank will continue to use quantitative tools, including the implementation of differential reserve ratio to control credit and M2 growth.