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China to make breakthrough on rate reform in 2015: central bank adviser

Thursday, March 5, 2015 - 09:51

[BEIJING] China will make a major breakthrough in interest rate liberalisation this year, but it will not be necessary for the country to widen its currency trading band in 2015, Chen Yulu, an adviser to the country's central bank told Reuters on Thursday.

Monetary policy for the year will be shaped by economic data during the first two quarters of the year, Mr Chen said. The performance of economies including Japan and European countries will also help dictate China's monetary policy in 2015, he added.

The central bank will maintain a neutral monetary policy to ensure the country's economy grows at between 6 per cent and 7 per cent in 2015, he said. Earlier on Thursday, Premier Li Keqiang told the annual meeting of the country's parliament that China will aim for economic growth of about 7 per cent in 2015.

China's central bank was not worried about capital outflows, but would remain alert for indications of capital flight, Mr Chen said.

REUTERS