The Chinese Central Bank Is Finding Itself In An Increasingly Difficult Position

Amid the National People's Congress, the People's Bank of China (PBoC) held a press conference in which it said, "monetary policy will stay prudent and neutral in 2013," according to Xinhua. China's official inflation target had been set at 3.5 percent, and the target for growth of broad money supply (M2) was being lowered to 13 percent. This month inflation reached a 10-month high of 3.2 percent, driven by food prices. While analysts and the PBoC said this was largely because of the impact of t...