Egypt partners with Google to promote 'unmatched diversity' tourism campaign    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Taiwan GDP surges on tech demand    World Bank: Global commodity prices to fall 17% by '26    Germany among EU's priciest labour markets – official data    UNFPA Egypt, Bayer sign agreement to promote reproductive health    Egypt to boost marine protection with new tech partnership    France's harmonised inflation eases slightly in April    Eygpt's El-Sherbiny directs new cities to brace for adverse weather    CBE governor meets Beijing delegation to discuss economic, financial cooperation    Egypt's investment authority GAFI hosts forum with China to link business, innovation leaders    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's Gypto Pharma, US Dawa Pharmaceuticals sign strategic alliance    Egypt's Foreign Minister calls new Somali counterpart, reaffirms support    "5,000 Years of Civilizational Dialogue" theme for Korea-Egypt 30th anniversary event    Egypt's Al-Sisi, Angola's Lourenço discuss ties, African security in Cairo talks    Egypt's Al-Mashat urges lower borrowing costs, more debt swaps at UN forum    Two new recycling projects launched in Egypt with EGP 1.7bn investment    Egypt's ambassador to Palestine congratulates Al-Sheikh on new senior state role    Egypt pleads before ICJ over Israel's obligations in occupied Palestine    Sudan conflict, bilateral ties dominate talks between Al-Sisi, Al-Burhan in Cairo    Cairo's Madinaty and Katameya Dunes Golf Courses set to host 2025 Pan Arab Golf Championship from May 7-10    Egypt's Ministry of Health launches trachoma elimination campaign in 7 governorates    EHA explores strategic partnership with Türkiye's Modest Group    Between Women Filmmakers' Caravan opens 5th round of Film Consultancy Programme for Arab filmmakers    Fourth Cairo Photo Week set for May, expanding across 14 Downtown locations    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Ancient military commander's tomb unearthed in Ismailia    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Egypt's FM praises ties with Tanzania    Egypt to host global celebration for Grand Egyptian Museum opening on July 3    Ancient Egyptian royal tomb unearthed in Sohag    Egypt hosts World Aquatics Open Water Swimming World Cup in Somabay for 3rd consecutive year    Egyptian Minister praises Nile Basin consultations, voices GERD concerns    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



China Inflation Rate Dips To 1.9% Raising Easing Hopes
Published in Amwal Al Ghad on 15 - 10 - 2012

China's policymakers have been given more room to boost stimulus measures after the country's inflation rate dipped in September.
Consumer prices rose 1.9% from a year earlier. That was down from a rate of 2% in August.
There have been calls for Beijing to ease its monetary policy to boost domestic demand and spur growth amid a global economic slowdown.
China's economic growth slowed to a three-year low in the second quarter.
"The weaker growth... was sort of inevitable at some stage," Jim O'Neill, chairman of Goldman Sachs Asset Management told the BBC.
"Part of the dilemma many observers face is to get used to the idea that China won't grow at 10% for the next decade as it's done for the last three decades, but it's still going to grow very strongly and it is still the most important thing for us and everybody else in terms of our export potential."
Domestic boost
China's economy has been hurt by falling demand for its exports and a slowdown in investment in the country.
Demand for its exports has been hit by continuing economic problems in key markets such as the US and Europe.
Despite the fact that exports rose by 9.9% in September from a year earlier, which was more than had been expected, the export sector's growth continues to remain under pressure.
As a result, China has been keen to boost its domestic consumption in a bid to rebalance its economy and sustain growth.
"This inflation picture remains supportive for further policy easing to support the growth recovery which is still the top priority for now," said Sun Junwie, an economist with HSBC in Beijing.
It has already lowered the reserve ratio requirement, the amount of money banks must keep in their reserves, three times in the past few months, in an attempt to boost lending and spur demand.
It has also cut interest rates twice since June this year, to bring down the cost of borrowing for consumers and businesses.
On the investment front, Beijing has approved infrastructure projects worth more than $150bn (£94bn) to try to spur a fresh wave of economic development.
Analysts said policymakers would have to introduce further measures in order to sustain long term growth.
"We think it's necessary to cut interest rates and reserve ratio requirement in [the] fourth quarter to ensure sound economic growth in 2013," said Wang Jun, an economist with the China Centre for International Educational Exchanges in Beijing.
BBC


Clic here to read the story from its source.