Whether overheating of economic activity can be contained through appropriate policy conduct is an important factor when monitoring developments not only in the Chinese economy but also the world economy, and global price developments including developments in international commodity prices. In 2005, the world economy grew by nearly 5 percent.
In October 2003, the Bank provided a detailed description of its commitment to maintaining the quantitative easing policy. One of the conditions underpinning the commitment was that the Bank needed to be convinced that the prospective core CPI would not once again drop below zero percent after terminating the policy.