China warns on QE inflation threat

The People's Bank of China has said that quantitative easing posed huge risks for international markets and the global economy.

The central bank said in its Quarterly Report on Monetary Policy, out Wednesday, that the outright purchases of government bonds by some central banks increased the risk of price instability.

"A policy mistake made by some major central banks would put the whole world in risk of inflation;" the report said. "If central banks cannot mop up the huge liquidity when econo

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