China's steady economic growth will continue in the second half of 2005, according to a fiscal policy report on the second quarter by the People's Bank of China.

The bank predicted the consumer price index will reduce in the third quarter and rise in the fourth quarter.

The incomes of urban and rural residents will rise, which will help increase consumption.

Investment demand is still in a high increase range, especially in coal, electricity and oil. The bank also said China's foreign trade will be affected by uncertainty. The report predicted a healthy and steady performance of financial factors in the second half of the year.

Source: Xinhua