PBOC: No immediate interest rate hike
7 June 2006
The central bank needs more time to evaluate April's surprise interest rate hike before it makes any decisions on further increases, central bank governor Zhou Xiaochuan said. The People's Bank of China is still waiting for May economic data and "will not take tightening measures in the near future," Zhou told the South China Morning Post. Economists remained skeptical, saying they expected other measures to tighten the economy in the wake of the 10.3% year-on-year growth seen during the first quarter. In April, the bank raised the benchmark lending rate to 5.85%, a hike of 27 basis points. Last month, the State Council announced new measures to slow property prices. Zhou did not comment on when the bank would consider new measures.