Not much room for cutting interest rates does not mean do not cut

 Yi Gang said: said the central bank's monetary policy instruments adequate to deal with deflation,UGG boots cheap, China has the ability to weather the financial crisis. the People's Bank of China Deputy Governor Yi Gang, 8, notes that at present and there is a great difference between the typical deflation, the central bank's monetary policy instruments have sufficient to deal with deflation. In addition, the long term, is expected pattern of the RMB currency in the world should be a rising currency. not a typical deflation Yi Gang admitted that the recent downward pressure on our prices are very obvious, but deflation in our country there are typical very different. He pointed out that deflation need to have the typical an accompanying under the influence of the hikes of negative growth, but the credit and money supply grew rapidly, the economy this year is expected to reach 8% growth rate, so typical of the latter two conditions are very far deflation. Yi Gang, cautions, to determine Price deflation was based primarily on the chain data, which compared with the previous month values, not just look at income over the same period year on year data. He pointed out that price deflation is the narrowest definition of two consecutive quarters (6 months) negative growth, negative growth are talking about here is mainly ring data than the data rather than up. Yi Gang said that if the price some months this year, there is negative growth year on year, largely affected by hikes in. He said: As long as prices fell -1.2% range above, or that the price level basically stable. magnitude too large. high growth. With the progress in the development of financial markets, interest rate market, the development process, and the corporate governance of financial institutions and the constant improvement of internal control, monetary transmission mechanism will be more open. Yi Gang reiterated that though there is still room for interest rate cuts, However, little space, the zero interest rate is not the optimal choice of the present. Yi Gang said China's current interest rates at a interest rates are no tools available. In addition,UGG boots clearance, interest rate comparison in different countries need to distinguish between the type and duration. Taken together, the current interest rate and the United States of roughly the same space compared to China's rate cut is not large. However, said Yi Gang : Meanwhile, China's capital return rate is not low, the zero interest rate will be distortions capital allocation, and may lead to asset bubbles and excessive investment and other issues. He said: But to seriously consider the effect of zero interest rate policy. Yi Gang also noted that the sense of balance, with the foreign exchange spot and forward markets continue to develop and improve the RMB exchange rate will become increasingly large extent determined by market supply and demand,Discount UGG boots, and market supply and demand is again under the light of the world economy competitiveness compared decisions, the future exchange rate would more accurately reflect our competitiveness. In the long run, is expected pattern of the RMB currency in the world should be a rising currency. Yi Gang, that the public should be kept on the Internationalization sense of balance, avoid ; overtaking mentality Or something seriously their own good. . It is this more conservative business model was robust to ensure our country's foreign exchange reserves in this round of financial crisis to keep a safe .2008, under the impact of the financial crisis, China's foreign exchange reserves has made the appropriate operating income, which is commendable. Currently, the U.S. national debt in the country's foreign reserve a certain proportion, whether to continue to buy U.S. treasury bonds,UGGs, Yi said to be in our interests as a starting point for decision-making, to ensure that foreign reserve investment security and appropriate benefits.