Money is also a resource, a scarce resource. Hence, the marketization of interest rate is very important, and the RMB interest rate, which is determined by the supply-demand relationship of the market, must not be distorted. Only in this way can the resources be allocated in a marketbased manner. The interest rate shaped by the supply-demand relationship also reflects risk premium.
As commodity prices rose, our terms of trade – the price we get for our exports relative to the price we pay for our imports – improved, helping to boost Canadian income growth.