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Higher energy costs would feed inflation, adding pressure on the central bank to raise rates.
A weaker real would help reduce the current-account deficit, but it would feed inflation.
That is helping feed inflation, which jumped in July to an annual rate of 5.79 percent from 4.86 percent in June, far above what analysts had expected.
The bank is concerned that too much available cash will feed inflation or asset bubbles of the type that preceded the 2008 crisis.
A rapid increase in labor costs could feed inflation, but most economists are not worried about rising prices, as the recession is keeping a lid on wage demands.
The gains show that China's fast-growing economy is chugging along and that huge amounts of foreign capital continue to flow into the country, complicating Beijing's economic policies and threatening to feed inflation and asset bubbles.
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The extra renminbi are feeding inflation.
Sticking with the peg would mean importing the policies of recession-threatened America and feeding inflation still more.
"By dropping rates and stimulating the economy, you're just feeding inflation, which is not something the Federal Reserve wants to do".
[C3.] Stocks Fall as Commodity Prices Heighten Inflation Fear Stocks tumbled as strength in the commodities market fed inflation fears and stifled investors' enthusiasm over upbeat first-quarter earnings from Alcoa.
A chorus of economists has warned that the Fed has unleashed too much easy money, feeding inflation and driving down the dollar.
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CEO of Professional Science Editing for Scientists @ prosciediting.com