China’s current interest rates are at a proper level and are approaching a comfort level, Chinese central bank Governor Yi Gang told Caixin in an interview in Beijing last week, in response to speculation on whether the country will follow suit if the U.S. Federal Reserve cuts interest rates.
China didn’t follow a string of interest rate hikes by the Fed last year, and if the Fed cuts interest rates in the future, China will still make a decision based on its own situation, Yi said.
“A rate cut is chiefly to respond to the risk of deflation, but now China’s (consumer) price trend is moderate,” he said.
The consumer price index, which measures the prices of a select basket of consumer goods and services, rose 2.7% year-on-year in June, unchanged from growth in the previous month, according to data from the National Bureau of Statistics.
Read the full story on Caixin Global later today.
Contact reporter Lin Jinbing (jinbinglin@caixin.com)
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