PBOC sees slower growth

Economic growth will slow to 8.9% this year, the People's Bank of China has announced. The bank has released projected GDP growth figures of 9.2%, 9%, 8.9% and 8.7%for the four quarters of 2006. This follows growth of 9.9% in 2005 and 10.1% in 2004. Consumer prices (CPI) are expected to increase 2% during 2006, broken down into rises of 1.5%, 2.1%, 2.1% and 2% across the four quarters. CPI grew 1.8% in 2005 and 3.9% in 2004. The bank said its projections were based on global economic growth of 4.3% in 2006 and consistent interest rates. The one-year yuan deposit rate is currently 2.25%, while the one-year lending rate is 5.58%.