China says monetary tightening to continue

BEIJING, April 16 (AFP): China will continue to tighten monetary policy for some time as the world's second-largest economy tries to tame inflation, the central bank chief was quoted by state media saying Saturday. People's Bank of China governor Zhou Xiaochuan said policymakers would use various measures to control inflation, which he described as high, but warned too many interest rate hikes would attract "hot money", Caijing magazine said. Zhou made the remarks on the sidelines of an international forum on the southern island of Hainan after Beijing released data Friday showing China's consumer prices last month rose at the fastest pace since July 2008. The politically sensitive consumer price index rose 5.4 per cent year-on-year in March-well above the government's 2011 target of four percent and fuelled expectations for further interest rate hikes and lending restrictions. The gathering in Boao has brought together leaders in government, business and academia in Asia and other continents every year since 2001 to discuss pressing issues in the region and the rest of the world.