Higher oil prices will constrain........>

CHINA PRESS: Higher oil prices will constrain central banks' ability to use

monetary policy to boost growth and stabilise stock markets as the global

economy and trade slow, said Mei Xinyu, a think tank researcher, in an article

published on 21st Century Business Herald Thursday. Escalating U.S. sanctions

against Iran may push up the oil price, as other major oil exporters --

including Saudi Arabia -- may not be willing to increase production to curb the

upward price pressure, Mei said. China's monetary policy should be prepared for

possible inflation, as it is more easily affected by changing oil price than the

U.S., Mei added.