IMF encourages free rein for yuan

China needs to boost interest rates and let the renminbi rise to help contain rapid credit and investment growth according to the International Monetary Fund. Charles Collyns, deputy director of the IMF's research department, said the mainland needs to rely more on monetary policy to stabilize its economy and sustain the rapid growth rates recorded in recent years, The Standard reported. His comments echoed previous calls from the IMF that China should depend more on monetary policy measures, and less on market interventions, as the country seeks to keep the growth of its economy on an even keel. Allowing further yuan appreciation would provide more room for raising interest rates, he added. China's economy has grown by 10% or more in real terms annually for the past four years.