Judicious Measures Are The Key To Dampening China's Sizzling Growth, Says Article May 07
- ID: 2165764
- May 2007
- Region: China
- Standard & Poors
Hong Kong (Standard & Poor's) May 24, 2007--China's central bank needs to sharpen its knives. Monetary tightening measures have so far failed to rein back runaway economic growth or stop share prices from reaching vertigo-inducing heights. Further measures expected in the second half of 2007 are likely to have only a limited cooling effect. That's according to an article released today by Standard & Poor's Ratings Services titled "Can China's Central Bank Do More Than Roar As Growth Soars?". The article explains that a judicious mix of interest, exchange, and reserve rate adjustments, as well as direct administrative measures, will be the key to dampening unsustainable growth and safeguarding long-term stability. "A heavy-handed approach, however, could have a significantly negative...
Companies mentioned in this report are: China (People's Republic of )
Action: General Comment
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Research type: News
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