China's economy is still in danger of overheating despite a second interest rate hike in four months, the IMF warned Thursday. IMF spokesman David Hawley said the latest increase, which took effect Saturday, was a positive sign but cautioned that "significant risks still remain that macroeconomic policies are not sufficiently tight". He advocated further monetary tightening in order to drain liquidity from the banking sector and slow credit growth. For some time now, the IMF has expressed concerns that China's economic boom is unsustainable, warning that any meltdown would have serious consequences for world growth.
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