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Chinanews, Beijing, June 25 – China's cemtral bank governor Zhou Xiaochuan said that inflation figures might further climb in the near future, in that case, the possibility was not excluded for China to further raise the interest rate. He predicted that economic growth might slow down during the second quarter of this year.
He made the statement while attending an annual forum1 of the Bank for International Settlements held recently in Brussels, Belgium. The CPI figures for last May were within the range of what he expected. “We have adjusted the interest rate. However, inflation rate might climb a bit higher now,” he said. China will allow Renminbi to exchange freely. However, this will be a gradual process. China will make the exchange rate policy based on its own understanding and such process will be gradual and controllable, and with China taking the initiative, Zhou said. He said that he was paying close attention of the development of mainland stock market, but he was not sure whether bubbles had existed in Chinese stock market.
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