Regulators Told The Bank &Nbsp That Credit Scale Would Be Reduced By 10% Next Year.

"In order to control the scale of credit, the scale of new domestic credit next year will be reduced by about 10%.

Some bank governors have received notice from regulators.

As the end of the year is approaching, in 2010, the credit line of new credit increased to nearly 7 trillion and 500 billion yuan. The International Financial Daily reporter learned yesterday that, in order to control the scale of credit, the scale of new domestic credit will drop by 10% next year.

"Some bank governors have received notice from regulators."

The person told reporters that the number of major banks in the next few years will be near the end of the credit plan allocation, and the credit scale may be reduced by about 10% compared to 2010.

In order to curb the scale of credit, the central bank has raised the deposit reserve ratio for the six time this year, but the central bank has not chosen to raise interest rates to constrain the flow.

Insiders told the international finance daily that at present, many major projects in the country still need continuous credit support. Raising interest rates may not be the means chosen by the central bank's recent regulation.

However, the person told reporters that if the inflation level remained high in the one or two quarter of next year, the central bank would choose to raise interest rates, and the rate of increase might be 0.25 percentage points.

In a report issued to the international finance Daily yesterday, Deutsche Bank estimated that China's inflation rate will continue to rise in the first half of 2011, and the benchmark interest rate may rise by 75 basis points in the next 7 quarters, while the loan growth rate will decrease from nearly 20% in 2010 to around 15% in 2011.

In the second half of 2011, China's inflation rate will drop. Deutsche Bank said in its report, "in the second half of 2011, the macro policy will shift to ease deflationary pressure and follow the GDP slowdown."

The main task of the government is to prevent inflation from rising further.

Deutsche Bank said the Chinese government will delay the price rise of water, gas, electricity and fuel in the coming months.

It is also expected that progress will be made in 2011 to increase the proportion of dividends paid by state-owned enterprises, promote the upgrading of manufacturing industries, internationalize the RMB, reduce taxes on service industries and deregulate interest rates.

"If the government does not take more radical measures now, the inflation rate will be higher in the latter part of next year.

If inflation rises to 6%-7%, the government will have no choice but to take more stringent measures, which may lead to a hard landing of the economy.

Deutsche Bank warned in the report.

Deutsche Bank said inflation in emerging economies in the post crisis era was hard to avoid. The current global inflation rate has rebounded from the trough of the recession, and this trend will continue.