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China may hike interest rate in Q1, central bank advisor

Tuesday, January 18, 2011 4:13 AM

BEIJING, Jan. 18, 2011 (Xinhua News Agency) -- There is possibility for China's central bank to further hike interest rate in the first quarter of this year as the country's policy focus has shifted from maintaining a fast economic growth to taming inflation, Li Daokui, a member of the Monetary Policy Committee of China's central bank, said on Tuesday.

It is reasonable to see an intensive adjustment of the monetary policy in the first quarter, Li added, without any elaboration.

He predicts China's GDP growth and CPI rise in 2011 at 9.5 percent and 3.5 percent, respectively.

But such a GDP growth is still pretty rapid for China, said the advisor to the central bank, adding 8.5 to 9 percent should be a proper rate.

Li also noted what he worries most is the imported inflation pressure brought from the rise of global resources and energy prices. In his view, the world oil price may rise to 100 or even 120 US dollars per barrel sometime this year.

China's central bank raised the benchmark deposit and loan interest rates on December 26, 2010, with that for one-year time deposits to 2.75 percent.

The country's year-on-year CPI rise, a main gauge of inflation, meanwhile, was as high as 5.1 percent in November and 3.2 percent in the January-November period. (Edited by Wang Shicong)

(Source: )
(Source: Quotemedia)


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