Chinese
Premier Wen Jiabao said on Sunday that
Beijing would "fine tune" economic policies to reinvigorate growth. The
People's Bank of China has cut interest rates twice in the past month in an effort to stimulate demand, and fresh readings on consumer and producer prices in
China suggest that more aggressive action from the central bank and the government could be in the works.
Chinese consumer prices were up 2.2% in June versus one year prior, a big slowdown from the 3% rise in May. Producer prices, dropping since last summer, fell another 2.1% last month. Until late in 2011, the focus of policymakers in China was on tamping down inflation, stocked by a surge of stimulus spending in 2008-2009 that led to a real estate bubble and an overheated economy...
