The US Federal Reserve lowered interest rates by a half point on
September 18 to limit the impact on the economy from the recent
disorder in the housing and credit markets.
However, the US interest rates slash will not affect Chinese
government's policy to raise its own interest rates and neither
will it make it difficult for China to contain its inflationary
pressure, said Wang Qing, chief economist for Morgan Stanley
Greater China Region.
"As long as China's domestic inflation remains at a high level,
China's central bank will continue to raise the interest rates
despite the US action," said Wang.
Starting from 2006, the central bank's interest rate policy has
shifted from stabilizing renminbi appreciation expectations to
controlling domestic asset and commodity inflation risks, Wang
pointed out. "The shift shows the government's confidence in
managing its capital accounts and gives it certain flexibility in
its money policies."
For more details, please read the full story in Chinese
(
http://www.caijing.com.cn/newcn/home/todayspec/2007-09-20/30826.shtml
).
(China.org.cn September 20, 2007)
