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China's central bank says the country's economy will achieve stable growth. But the pressure for wage increases will intensify and authorities must manage inflationary expectations.
In its monetary policy report for the second quarter, the central bank also says China will see considerable net forex inflows. But it repeats that there is no basis for big swings in the exchange rate of the Chinese currency yuan. It will be kept basically stable at a reasonable and balanced level.
The bank also says massive fund raising plans by big financial institutions would impact the capital market. It says such moves must be better regulated and managed.