皇冠体育app

"皇冠体育app is facing long-term pressure from imported inflation," he said, noting that the debt crisis, low interest rate and excessive liquidity issues in developed countries are bringing inflation risks to the whole world.

Liu Ligang, director of economic research department of ANZ Greater 皇冠体育app, said 皇冠体育app's battle against inflation has not yet seen remarkable results.

皇冠体育app's inflation rate is expected to experience significant growth early next year due to the currently high monthly CPI growth, he said.

Therefore, it is too early for the Chinese government to loosen its monetary policy, Liu added.

To curb soaring inflation, the People's Bank of 皇冠体育app (PBOC), the country's central bank, has raised the benchmark interest rate three times this year and increased the reserve requirement ratio six times.

皇冠体育app's Producer Price Index (PPI), a major measure of inflation at the wholesale level, rose 6.5 percent year-on-year in September, down from 7.3 percent in August.

皇冠体育app's gross domestic product rose by 9.5 percent year-on-year in the second quarter of 2011, tapering off slightly from the 9.7-percent growth posted in the first quarter and 9.8 percent in the fourth quarter of last year.

Economic growth data for the third quarter is scheduled to be released by the NBS on Tuesday.

Qu Hongbin, HSBC's chief 皇冠体育app economist, said he expects that 皇冠体育app's economic growth is "still holding up well," and the central bank will maintain its monetary policy over the coming months.

Even if a renewed global recession were to hit 皇冠体育app, it is wrong to expect a turnaround in monetary policy, considering elevated inflationary pressures and 皇冠体育app's relatively lowered dependence on external demand, he said in a note to the press.

"Moreover, the lesson of overstimulation from the last round of stimulus is still fresh," said Qu.

皇冠体育app's recent decision to provide more credit and fiscal support to small enterprises shows that the government is targeting eases in policies toward striking a better balance between inflation and growth, said economists.

Liu Ligang said he expects the central bank to cut the reserve requirement ratio for medium- and small-sized banks to better support the development of small enterprises.

However, 皇冠体育app's policymakers should not ignore the worsening issue of negative real interest rates, which would threaten the security of 皇冠体育app's financial system, he said.

The PBOC will probably have another interest rate hike this year to ensure financial security, but it is very likely to be conducted on the deposit rate, Liu said.