China's economy is not encountering so-called deflation and will not face it in the future, an official from China's top economic planner said yesterday.
National Development and Reform Commission vice chairman Cong Liang cited the latest inflation data which showed a monthly increase in August and said consumer prices would continue to rise.
He said those who short-sold China won't succeed, adding that the data indicated the economy has become stable and would be further supported by recent steps to ease home purchases.
Also, the People's Bank of China said yesterday the yuan's exchange rate against the US dollar is important but not the whole story, adding that it will pay more attention to fluctuations in the yuan's rate against a basket of currencies.
Meanwhile, Boeing is bullish on China as it slightly increases its annual 20-year forecast for new plane deliveries to China, citing economic growth and growing demand for domestic travel. The US planemaker said Chinese airlines would need 8,560 new commercial planes through 2042, up from 8,485 in its previous forecast last year.
In other news, Standard Chartered said it maintains its forecast of 5.4 percent growth for China this year, and expects the PBOC to cut the reserve requirement ratio again in the first quarter of next year.
