date:Apr 10, 2013
relative wages are further increased, so both the markets and policymakers should increase their inflation tolerance level to around 3 percent to 4 percent, Lu wrote in a note to clients.
Monetary stance
Lu expects China's monetary policy stance to be set to neutral through the first half of 2013, a position he regards as normalising after being set to easy through the second half of 2012 to engineer an economic recovery.
China's economy suffered its slowest year of growth for 13 years in 20