Central bank may raise renminbi rate
6 June 2007
Zhou Xiaochuan, the governor of the People's Bank of China, said the decision to further raise interest rates will be made after the consumer price index (CPI) figures for May are released, according to the Economic Observer (in Chinese). Zhou made the comment in an interview after accepting an award for best central bank head in Asia by The Banker, a British magazine. Mr Zhou also said the central bank does not rule out the possibility of using different measures to keep the yuan's exchange rate stable. Statistics show pork prices have increased 10.5% as well as other food products such as eggs and peanut oil. It was estimated that the increase in food prices will push the CPI figure to a 4% increase in May.