Economic growth of 8.6% in '05; inflation set at under 4%

China set a target for gross domestic product (GDP) growth of 8.6% for next year, state media said, citing Yao Jingyuan, chief economist of the National Bureau of Statistics. Yao projected consumer price index (CPI) growth would be under 4% in '05 – well below this year's high of 5.3%, a development that prompted the People's Bank of China to raise one-year deposit and lending rates by 27 basis points in October, the first hike in nine years.