Large Medium Small |
BEIJING - It is necessary for China's central bank to raise the benchmark interest rate once or twice in the second half of this year to curb rising inflation, according to a report by the Agricultural Bank of China (ABC).
Besides, it is possible for the central bank to elevate the bank reserve requirement ratio for one or two times in the second half, according to ABC.
The bank predicted a 4.8 percent year-on-year increase of the Consumer Price Index (CPI) for the full-year in 2011, while the gross domestic product (GDP) will expand by 9.5 percent.
Regarding the value of the Chinese currency renminbi, ABC expected the yuan to continue strengthening against the US dollar in the second half, with a rise of 5 percent this year.
China's CPI, a main gauge of inflation, spiked to a 34-month high of 5.5 percent in May and the central bank had so far hiked the benchmark interest rate twice this year by 25 basis points each time.
分享按钮 |