Top researchers at the People's Bank....>

CHINA PRESS: Top researchers at the People's Bank of China suggested that higher

interest rates may help contain asset bubbles and debt expansion, so it should

be used in managing broad financial activities, the China Daily reported Monday.

Interest rates can be increased now given that prices of industrial products and

profitability have both improved since last year, the paper cited Ji Min, deputy

head of the central bank's research bureau as saying over the weekend. Rates of

inflation and foreign exchange should be factored in before a rate hike, Ji

said. However, a rate hike coupled with deleveraging and cutting of excess

capacity by industrial producers could further improve returns by discouraging

costly expansion, the report noted. (China Daily)