Guidance, not control, says central bank's Zhu

Updated: 2010-02-01 08:00

Guidance, not control, says central bank's Zhu
 Zhu Ming

Reining in credit 'an appropriate response'

Davos, Switzerland: China's central bank stands ready to take more steps this 
year to ensure rapid lending growth does not cause the economy to overheat, a 
senior official said on Saturday.

Zhu Min, deputy governor of the People's Bank of China, also said recent steps 
to rein in credit were an appropriate response to that problem and did not 
signal a departure from the country's relatively loose policy stance.

"We are very carefully managing loan growth this year to slow down the path of 
loan growth and to make sure that investment will be at a smooth level to avoid 
overheating," Zhu said on the sidelines of the World Economic Forum. "We will 
guide - we don't want to use the word control because they (the banks) are 
commercial entities - the market and we would like to see smooth loan growth 
and smooth growth," he said in an 
interview.............................................................................................


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