China has no need to raise its..........>

CHINA PRESS: China has no need to raise its benchmark interests rate as the

economy still faces downturn pressures and inflation has started to fall,

People's Bank of China counselor Sheng Songcheng said Wednesday in an interview

with China Business News. China should maintain stable benchmark rates while

allowing banks to float their rates accordingly in a bid to improve the

efficiency of financial resources allocation and support reform of the banking

sector, Sheng noted. Regulators should prevent financial institutions from

transferring high capital costs to the real economy, which would result in a

rise in funding costs and hurt the government's deleveraging campaign, he said.

Sheng also said that China's monetary policy will not be loosened next year

because the country still needs to consolidate the achievements of the

deleveraging campaign. (China Business News)