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China may let yuan rise by 5% to check inflation
19 Feb 2010, 0350 hrs, Bloomberg
LONDON: China may let its currency appreciate by 5% as early as next month to prevent economic growth from stoking inflation, according to
Stephen Jen of BlueGold Capital Management.
Policy makers may also raise interest rates this year to cool an economy.
The central bank last week ordered lenders to boost the amount of cash they must put aside as reserves for the second time this year in an attempt to curb growth in loans.
China’s “first challenge is inflation expectations,” People’s Bank of China deputy governor Zhu Min said. Goldman Sachs Group chief economist Jim O’Neill said on February 15 a decision by China to revalue the currency as much as 5% “could happen at any time.”
The central bank’s decision to raise reserve requirements came after banks extended 19% of the 7.5 trillion yuan of targeted loans for the year in a single month and property prices climbed the most in 21 months.
.
19 Feb 2010, 0350 hrs, Bloomberg
LONDON: China may let its currency appreciate by 5% as early as next month to prevent economic growth from stoking inflation, according to
Stephen Jen of BlueGold Capital Management.
Policy makers may also raise interest rates this year to cool an economy.
The central bank last week ordered lenders to boost the amount of cash they must put aside as reserves for the second time this year in an attempt to curb growth in loans.
China’s “first challenge is inflation expectations,” People’s Bank of China deputy governor Zhu Min said. Goldman Sachs Group chief economist Jim O’Neill said on February 15 a decision by China to revalue the currency as much as 5% “could happen at any time.”
The central bank’s decision to raise reserve requirements came after banks extended 19% of the 7.5 trillion yuan of targeted loans for the year in a single month and property prices climbed the most in 21 months.
.
