Zhou Xiaochuan, governor of the People's Bank of China, said on December 16 that as inflation falls faster than expected, the central bank still faces pressure to trim interest rates from the end of the year to the middle of next year; interest rates cut is likely to be announced again.
He reiterated that since China has implemented a managed floating exchange rate system based on the market's supply and demand, the depreciation of the Renminbi (RMB)'s exchange rate does not necessarily have a great impact on China's exports. After all, the declining of China's exports is mainly caused by shrinking demand from Europe and the US.
Zhou deemed the RMB will play a critical role in the future world, which provides immense business opportunities for financial services and products. He believes that it will not be difficult for Hong Kong to expand its RMB business.
The global financial crisis did greatly affect China. To cope with the crisis, the Chinese government will expand domestic demand, and will continue with its market reform and opening-up policy, Zhou added.
By People's Daily Online
|
Comment
Tell A Friend
Print Format
Save Article