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Monetary Authorities Should Jointly Consider Future Rate Hikes

CHINA PRESS
MNI (BEIJING)

World monetary authorities should jointly consider if raising interest rates by a further 25-50bp is appropriate in a highly volatile global environment, according to Lu Lei, deputy director of the State Administration of Foreign Exchange. Speaking at the Boao Forum, Lu said liquidity secures economic stability, along with growth and inflation. In China, the central bank uses its open market operation to adjust liquidity needs of the financial system, he adds. When good banks and financial institutions run into difficulty due to liquidity issues, central banks should provide relevant support, he noted.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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