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PBOC Unlikely to Hike Rates against Imported Inflation: Herald

CHINA PRESS
MNI (Singapore)

The PBOC is unlikely to raise rates and tighten policies to manage imported inflation, despite some emerging economies including Turkey using rate hikes to stop their plunging currencies, the 21st Century Business Herald reported citing analysts. Imported inflation may drive up China's PPI more significantly than CPI, but PPI growth is expected to decelerate in H2 on the base effect, the newspaper said citing Chi Guangsheng, an analyst at Essence Securities. China is unlikely to experience large-scale capital outflows as its economy strengthens further, and China's opening of financial markets is giving investors more confidence, Chi said.

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