Prudence over rate cut

In the global fight against economic recession, developed countries' zero-interest-rate policy does not necessarily make a good option for China. Chinese policymakers should remain sober-minded even in the face of loudening calls for further interest rate cuts to boost domestic growth.

By stressing that China's interest rates are not as high as some observers claim, Yi Gang, vice-governor of the People's Bank of China, made clear on Saturday that there isn't much room left for interest rate cuts.

Such a statement is much needed to dispel the misconception that China's central bank should follow the lead of its Western counterparts who are racing to slash interest rates to save their economies.