Experts Say Hot Money Should not Deter Interest Rate Hike

(Beijing) - China's central bank has raised the reserve requirement ratio six times this year but fallen short of raising interest rates for fear of "hot money" inflows and a slowdown in exports.

Li De, senior researcher at a think tank affiliated with the central bank said the People's Bank of China has fewer tools in its hands as the reserve requirement ratio has reached 18.5 percent.

Li said the PBOC can issue central bank bills to drain liquidity in addition to reserve requirement ratio hikes.