ADB economist expects China to raise interest rates soon
(Xinhua)
Updated: 2006-07-20 21:03
China is expected to raise its interest rates soon, and there can be no
turning back, Tang Min, chief economist with the China Mission of the the Asian
Development Bank (ADB) told Xinhua's newspaper Thursday.
Tang was quoted by the Shanghai Securities News as saying that the
overheating of the economy had become more and more obvious in the first half of
the year, so the country would surely choose to hike interest rates to solve the
problem.
Tang expects interest rates to go up step by step, ruling out the possibility
of a once-only big rise, which he said would impact companies and society too
drastically.
A rise in interest rates is not sufficient to solve the overheating problem,
and the central government must take other measures to restrain investment, he
said.
China's economy surged a year-on-year 10.9 percent in the first half of 2006,
the National Bureau of Statistics (NBS) revealed, roaring ahead despite a slew
of measures imposed by the government to ease the blistering growth of
investment.
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