China unlikely to raise interest rate this year

时间：2007-01-24 05:35:25

（单词翻译:单击）

Chinanews, Beijing, Jan. 24 – Chinese government's macrocontrol measures taken last year have proved to be effective. As a result, the growth rate of investment on fixed1 assets and that of credit release have both declined. If such trend continues, some analysts2 predict that it will then be very unlikely for Chinese government to raise the interest rate, China Business News reported.

 

Professor Ren Ruo’en from the Economic Management School of the Beijing University of Aeronautics3 and Astronautics said that commodity price will not go up much this year and next. At the same time, Chinese macroeconomy will show signs of cooling down. The ever-increasing trade surplus indicates a weak consumption demand at home. In this situation, it is very unlikely for the central bank to raise interest rate.

 

Professor Zhao Xijun from Renmin University of China agrees with the view by proposing a different reason. He said that at present, there is over-liquidity in the Chinese economy while consumer price index remains4 low. In light of this, the central bank won’t probably raise the interest rate.

 

Some economists5 point out that local governments’ investing boom and banks’ enthusiasm for credit release make it hard for interest raise to achieve any desired result. On the other hand, any administrative6 measures might become more effective to them.

 

Renminbi appreciation7 has become a major hindrance8 to interest raise. When a country’s currency appreciates, it is usually the case for the country’s central bank to keep its interest rate at a low level. Renminbi appreciation has attracted lots of hot money from overseas and as a result, both the current items of Renminbi and its capital items display a favorable balance. If the central bank raises the interest rate, more hot money will flow to China and this will add more pressure for Renminbi to appreciate.

 

Last year, Chinese central bank managed to keep the Renminbi appreciation rate to stay below the interest difference of the yuan and the US dollar. If the United States further reduces its interest rate, it will make the interest difference between the yuan and the US dollar even smaller, which will make it even more difficult for the central bank to raise interest rate.

 
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1 fixed JsKzzj     
adj.固定的，不变的，准备好的；(计算机)固定的
参考例句：
  • Have you two fixed on a date for the wedding yet?你们俩选定婚期了吗？
  • Once the aim is fixed,we should not change it arbitrarily.目标一旦确定，我们就不应该随意改变。
2 analysts 167ff30c5034ca70abe2d60a6e760448     
分析家，化验员( analyst的名词复数 )
参考例句：
  • City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
  • I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。
3 aeronautics BKVyg     
n.航空术，航空学
参考例句：
  • National Aeronautics and Space undertakings have made great progress.国家的航空航天事业有了很大的发展。
  • He devoted every spare moment to aeronautics.他把他所有多余的时间用在航空学上。
4 remains 1kMzTy     
n.剩余物，残留物；遗体，遗迹
参考例句：
  • He ate the remains of food hungrily.他狼吞虎咽地吃剩余的食物。
  • The remains of the meal were fed to the dog.残羹剩饭喂狗了。
5 economists 2ba0a36f92d9c37ef31cc751bca1a748     
n.经济学家，经济专家( economist的名词复数 )
参考例句：
  • The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
  • Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》
6 administrative fzDzkc     
adj.行政的，管理的
参考例句：
  • The administrative burden must be lifted from local government.必须解除地方政府的行政负担。
  • He regarded all these administrative details as beneath his notice.他认为行政管理上的这些琐事都不值一顾。
7 appreciation Pv9zs     
n.评价；欣赏；感谢；领会，理解；价格上涨
参考例句：
  • I would like to express my appreciation and thanks to you all.我想对你们所有人表达我的感激和谢意。
  • I'll be sending them a donation in appreciation of their help.我将送给他们一笔捐款以感谢他们的帮助。
8 hindrance AdKz2     
n.妨碍，障碍
参考例句：
  • Now they can construct tunnel systems without hindrance.现在他们可以顺利地建造隧道系统了。
  • The heavy baggage was a great hindrance to me.那件行李成了我的大累赘。

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