Central bank confident of averting rate hike fallout

Economists say monetary tightening measures likely to continue in China

The People's Bank of China, the central bank, is now more confident about using flexible monetary policy tools to cope with an impending US funds rate hike later this week, without disturbing the predetermined financial deleveraging pace and interest rate reform, said economists.

Monetary tightening measures are likely to continue in China to curb credit risk, given the recent moderate growth of money supply and bank lending. The monetary policymakers, however, should no longer be nagged by debating whether to follow the US steps, as domestic economic conditions and the still-high debt ratio will continue to be the top concern, they said.