PBOC chief says no interest rate hike

People's Bank of China (PBOC) Governor Zhou Xiaochuan said that China's central bank will not raise the renminbi interest rate �in the short term�, according to mainland media reports. The PBOC head's comments followed weeks of debate by Chinese economists regarding an interest rate increase in response to rising consumer prices and investment growth. China's consumer price index rose 3.2% year-on-year in January 2004 and December 2003. State Administration of Foreign Exchange Director Guo Shuqing agreed with Zhou, adding that a future rate hike was likely if consumer prices experience a sharp rise.