Last year, food price inflation was 38 percent and this year it’s only 1.6 percent, so that’s the one variable that has given the government a lot of room to liberalize prices.

We believe domestic demand will increasingly become a much more important driver for growth…in the coming years.

January trade numbers appeared stronger than expected, in line with global growth momentum.

Since China moved on the currency last July, the economy has been charging along. China should feel comfortable and confident in driving through reforms. There has been no economic or financial turbulence.

I think we’ve passed an inflection point. We’re seeing an end to the golden period of extremely low-cost labor in China. There are plenty of workers, but the supply of uneducated workers is shrinking.

Such an early and decisive policy adjustment will indeed strengthen the credibility of the central bank, and give investors more confidence.

The acceleration of loan growth will add further fuel to the current growth momentum and we see upside risks to our growth and inflation forecasts this year. The economy is accelerating on all three cylinders.

We expect financial conditions to tighten in the second quarter.

Between now and May, we’ll continue to see concrete measures being announced to ease restrictions on holding foreign exchange, easier access to foreign exchange by domestic firms and even by residents.

Only adjusting the lending rate alone increases the banks’ lending margin. Everything else being equal, it enhances banks incentive to lend.

This is much stronger growth than the market expected.

We now have a new snapshot of the Chinese economy. This is not slightly bigger, it’s a significantly bigger economy.