Interest rates are likely to remain unchanged, said Zhu Min, former vice-governor of the country’s central bank, to Reuters on Tuesday, given the central government’s current focus on reducing debt levels, and a stable inflation rate.
Zhu, who has also previously held positions at the IMF, added that “The deleveraging will continue but I don’t see the reason to raise interest rates”. He took a similarly relaxed view on inflation, which, though at present not a cause for concern, will need to be observed closely by the authorities should any pick-up in factory-gate inflation begin manifest in consumer prices.