Wen said China seeks to reassure public opinion about inflation
Try Chinese Premier Wen Jiabao on Sunday to reassure the public about the government's ability to control inflation, a day after China raised interest rates amid fears that high prices could harm social stability.
Wen confirmed statements by the government fears the anger, because of inflation - a sensitive topic, especially in a society where poor families spend up to half their income on food. Increasing revenue helped offset rising prices, but inflation and a weakening economic benefits that help support the ruling Communist Party maintains that much.
"I tell everyone, the government has full confidence in overcoming this difficult phase with the masses," said Wen Jiabao, taking questions from callers during a visit to the offices of China National Radio, according to a report posted on the station. Did not identify the caller by name.
Wen expressed his confidence in the government's ability to control price increases, pointing to the large reserves of grain, as well as moves to boost production through tax cuts and concessions.
He also pointed to the government to raise interest rates twice and increased the share of bank reserves - that is, they must earn more money saved in reserve instead of lending it - six times this year to limit lending.
Wen also pledged to focus more efforts to reduce housing prices, and recognizes that the measures taken this year has not been done well.
He said the government will seek to increase the supply of affordable housing, and will impose strict controls on speculation in real estate.
"I think that after the effort, and property prices will be back at a decent level and I'm sure this kind," he said.
Wen Jiabao, driver's favorite character, and tried to prove that the government is aware of this problem.
Rose Your words hurt the heart and the reality of prices in recent years in various parts of the country, and in these circumstances, the lives of low-and moderate-income, is more difficult: in response to price and listeners lamenting the rise, said Wen .. "
State Council, China's cabinet, in an effort to rein in food prices during the launch efforts to increase production of vegetables and other commodities. Authorities crack down on hoarding and speculation, saying that it is partly responsible for high prices.
The inflation rate jumped to 5.1 percent in November, a 28-month high, despite a crackdown on speculation and repeated the proposal to reduce the flow of money in circulation in the economy in stimulus spending, and large-scale bank loans.
On Saturday, the government announced that the interest rate on loans for one year and will rise by 25 basis points to 5.81 percent, while the interest rate on deposits for the year increased by the same amount to 2.75 percent - effective Sunday.
Chinese banks provided a total of 7.45 trillion yuan (1.1 trillion U.S. dollars) from January to November and is sure to override the government's official target of 7.5 trillion yuan loans in 2010.
Helped wave advances during the past two years, China has grown rapidly in the recovery from the global crisis, but, along with bad weather and high world commodity prices, led to complicate efforts to cool inflation.
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