Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Central bank sitting on the fence for another interest hike
Adjust font size:

Yi Gang, assistant to the governor of the People's Bank of China, suggested the central bank still needs time to decide whether to raise the benchmark interest rate again this year, according to the Shanghai Securities News.

 

September's consumer price index (CPI) growth was a reported 6.2 percent, down 0.3 percentage points from the peak of August's 6.5 percent. However, Chen Jijun, a macro economic analyzer from CITIC Securities, said "the actual interest yield is still negative based on current one year benchmark interest rate of 3.87 percent."

 

On October 11, the central bank unleashed 150 billion yuan (US$20 billion) of central bank notes with 3-year maturity period. Two days later, it announced the year's eighth lift in banks' reserve requirement ratio, which together with gloomy fixed asset investment figures, raised market expectations for a sixth interest rate rise this year.

 

In the meantime, Yi, when addressing a forum in Hong Kong, claimed the whole year's CPI will surpass 4 percent and reach a likely 4.5 percent. Yet because turning the negative actual interest yield is no short term effort, the central bank has maintained its "wait and see" policy.

 

With regard to renminbi appreciation, Yi personally believed minor fluctuation and gentle appreciation are appropriate approaches.

 

(China Daily October 25, 2007)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- Central Bank Raises Interest Rates
- Bank Withdrawals Continue But Rate Falls
- China Raises Interest Rates 4th Time
- Interest Rate Raised for 5th Time This Year
Most Viewed >>

Nov. 1-2 Tianjin World Shipping (China) Summit
Nov. 7-9 Guangzhou Recycling Metals International Forum
Nov. 27-28 Beijing China-EU Summit
Dec. 12-13 Beijing China-US Strategic Economic Dialogue

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?