Zhou Xiaochuan: interest rate increase this week is not satisfied with the current interest rate
November 20th, 2007 | by cm8295 |People’s Bank of China Governor Zhou Xiaochuan recently said that the current interest rate level is satisfied with, the central bank will continue to pay close attention to the future of statistical data; China does not need to adjust interest rates too frequent level, but does not rule out the possibility of adjustments to continue.??Asked again in the near future the possibility of raising interest rates, Zhou said, do not want to talk about long-term prospects, but at least it will not be on the 19th this week. “Always depends on the level of central bank interest rate the state of economic data, therefore, we will continue to pay close attention to future economic data.”Of particular concern for the central bank will be the economic data, Zhou Xiaochuan said: “Many economic data analysis are very complicated.” He said, the central bank expects next year’s inflation pressure will not be great, the annual inflation target set when the central bank will consider the original price correction traditional distortion factors.
In South Africa to participate in the Bank for International Settlements break of the meeting, Zhou Xiaochuan, said to reporters that will continue to improve the deposit reserve ratio to recover mobility; reserve ratio further enhance the space is still very great. In fact, raising the deposit reserve ratio of pace will continue. He said that the effect of any of the tools are limited, but continued to space still exists. Zhou Xiaochuan also said that the existence of too many on the international market liquidity, China’s foreign exchange reserve increased the relative speed or faster.
He said that, despite the volatility of monthly inflation data, but most economists expect the inflation rate this year is about 4.5 percent; central bank expects next year’s inflation pressure will not be great. As China is gradually moving from a planned economy transition to a market economy, the central bank corrected the original face of public transport and facilities, and other areas within the mandate of price distortion, which means that the inflation rate will rise.
In the ensuing attend G20 finance ministers and central bank meeting, Zhou Xiaochuan also said upgrading the RMB flexibility are various ways. Currently the RMB exchange rate floating range of reasonable, necessary, will consider expanding the exchange rate floating range, depending on the global economic situation.He said that China will do its utmost to support a strong dollar, would like to see a strong dollar.
