World Bank Says China Needs to Raise Interest Rates Further
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The World Bank said China should raise interest rates and allow a stronger yuan to damp inflation, along with guarding against a surfeit of capital inflows.
“Further normalization of the macroeconomic stance is needed to guard against macro risks,” the World Bank said in a periodic report on the Chinese economy released today, citing asset-price gains, bad loans and “strained” local-government finances. “Interest rates will need to rise further.”