The head of the People’s Bank of China’s research bureau said that the domestic economy may have grown by 7.5% in the second quarter, putting it on track to reach the government’s annual target of 8% GDP growth, the South China Morning Post reported, citing state media. In an article published in the central bank’s magazine, China Finance, Zhang Jianhua said the economy might grow by 8% in the third quarter and 9% in the fourth quarter on the back of the government spending. Zhang said it was “very likely” the economy would grow by 8% this year and about the same amount in 2010, and that Beijing did not need to make drastic adjustment to monetary policy. Instead, policymakers should conduct “fine-tuning” to prevent asset bubbles, risks from bad loans and rising inflation.
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