Central bank to maintain RMB interest rate
People's Bank of China Governor Zhou Xiaochuan Thursday ruled out the possibility of a raise in interest rate this month as the current rise in consumer price index (CPI) has not yet reached the level for an interest rate adjustment.
"As for the policy for next month or a longer period in the future, we have to make further observation," said Zhou Xiaochuan, governor of the People's Bank of China.
The central bank will keep a close watch of the country's economic
development and price changes and will decide whether to readjust the monetary
policies, Zhou said at a press conference held on the sidelines of the annual
session of the national legislature.
According to him, the central bank will make timely, proper adjustments to
the monetary policies according to changes in the situation.
China's consumer price index (CPI), policy-makers' key inflation gauge, rose a year-on-year 3.2 per cent in January and last December, the highest since April 1997 when it was also increased 3.2 per cent year-on-year.
China notched up 9.1 per cent economic growth last year, fuelled by 26.7 per cent growth in fixed asset investments.