Zhou Xiaochuan: In The Long Run, Interest Rates Will Be Higher Than CPI&Nbsp, And The People Will Be Richer.

"China's economy can maintain steady and rapid development during the '12th Five-Year' period, which means that the income of residents will continue to increase, and it will take much more every year.

The government attaches great importance to maintaining relatively low inflation, which means that assets have a channel of maintaining value and increasing value, which is optimistic from this perspective.

Zhou Xiaochuan told China News Agency reporters here.

In this interview, Zhou Xiaochuan admits to analyze several key words of China's macroeconomic regulation: inflation expectations, prudent monetary policy, deposit reserve ratio, interest rate policy, and wealth to the people.

Turning to inflation expectations, Zhou Xiaochuan said that the package of economic stimulus against the global financial crisis was successful and had a great effect, but it also had inertia, bringing prices up and some assets might bubble.

As the economic situation changes, policy adjustment should be as timely and timely as possible, controlling price inflation and asset bubbles, and returning to normal as soon as possible.

Will the deposit reserve ratio and other quantitative tools be better than interest rate and other price tools? Zhou Xiaochuan gave a detailed explanation of this.

He said that the possibility of using quantitative and price based tools cannot be ruled out.

The central bank has always attached importance to the role of interest rate policy. In October 19, 2010 and December 26th, the benchmark rate of deposit and loan was raised.

Interest rate adjustment also takes into account its economic conditions and positive and negative two aspects.

Zhou Xiaochuan said that from the economic conditions, the world economic recovery is uncertain, and there have been some unexpected situations, such as the European sovereign debt crisis. Many people, including us, did not expect that, as the US economy at the beginning of 2010 was not bad, it suddenly became weak.

These accidents make it hard for you to consider the strength of economic recovery. In this case, the use of some tools may need to be cautious.

Does the term "prudent currency" mean tightening in the beginning of the 12th Five-Year monetary policy adjustment?

Zhou Xiaochuan said that a prudent monetary policy is a monetary policy in the normal operation of the economy, and a moderately loose monetary policy was adopted in combating the global financial crisis, and thereafter monetary policy should return to normal.

He explained that in the five grades of tight monetary policy, moderate tight, steady, moderately loose and loose, stability is the middle value.

From moderate easing to stability, special policies are callback to normal.

He pointed out that the present policy is "not excessive contraction".

Can interest rates increase to the people?

Zhou Xiaochuan said that in the medium term, the average deposit rate is higher than CPI, making the old.