Zhou Xiaochuan was elected as a vice chairman of China’s top government advisory body on Monday, a move that will allow him to serve as head of the People’s Bank of China (PBoC) beyond retirement age.
Zhou, 65, was among the 23 vice chairpersons who were elected to the post at the National Committee of the Chinese People’s Political Consultative Conference (CPPCC). Zhou was appointed as PBoC Governor in December 2002.
Yu Zhengsheng, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, was elected chairman of the CPPCC National Committee, replacing Jia Qinglin.
The move to keep Zhou as PBoC head, at a time when the economy is grappling with slowing recovery and rising inflation, will help the central bank to frame more effective policies to address the issues.
Zhou’s unparalleled experience in handling China’s monetary policy during turbulent times, including the Global Financial Crisis, should inevitably help the economy to steer through muddy waters.
Data released by the National Bureau of Statistics on Saturday revealed that inflation rebounded strongly to hit a ten-month high in February, while other indicators softened to signal slowing recovery of the world’s second largest economy.
Consumer price inflation rose to 3.2 percent in February from 2 percent in January with food prices surging 6 percent amid Lunar New Year festival. Meanwhile, growth in retail sales, industrial production as well as bank lending softened.
The PBoC cut interest rates twice between June and July and lowered the reserve requirement for banks three times since late 2011. The economy ended its seven-quarters of slowdown in the fourth quarter of 2012, with the gross domestic product growing 7.9 percent.
However, the growth rate sank to a 13-year low of 7.8 percent in 2012 as a whole from 9.2 percent in 2011 and 10.3 percent in 2010. China aims to achieve 7.5 percent economic growth this year.
by RTT Staff Writer
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