BEIJING, April 14 (Reuters) – The strength of China’s economic recovery has been largely due to government stimulus spending, but many problems, including inflation, still lie ahead, the State Council, or cabinet, said on Wednesday.
In a statement reviewing the country’s first-quarter economic performance, the State Council pledged to maintain the appropriately loose monetary and active fiscal policy settings first implemented at the height of the global financial crisis in late 2008.
It also said that inflationary expectations were intensifying and that it would work unswervingly to curb excessive housing price rises.
Its statement did not make any mention of the yuan or exchange rate policy.
China is due to report its first-quarter GDP growth figure on Thursday. Analysts polled by Reuters forecast that the economy grew 11.5 percent year on year, compared with a 10.7 percent pace in the fourth quarter. (Reporting by Zhou Xin and Simon Rabinovitch; Editing by Benjamin Kang Lim)