Zhou Xiaochuan said, "Currently our economy is highly dependent on the international market. A global downturn and a weakening external demand will ultimately have a negative impact on our economic growth."

The Central Bank Governor also expressed concerns about stock markets, fixed-asset investment and prices of commodities. He says uncertainty has increased in terms of inflation and stabilizing prices has become more complex.

Inflation in September may have eased. But the head of the Central Bank said many challenges still lie ahead. That is because stability of prices can be affected by factors both at home and abroad. And policy-makers must take all this into account when they come up with measures targeting prices.

(CCTV, Xinhua News Agency October 27, 2008)