Wen says China eyeing fresh stimulus measures

Chinese premiere Wen Jiabao, in a rare interview with the Financial Times, said China is considering additional stimulus measures on top of the US$585 billion fiscal package launched late last year. Speaking in London on the fifth leg of a European tour of China’s trade partners, Wen said, "We may take further new, timely and decisive measures. All measures have to be taken pre-emptively before and economic retreat." He confirmed that US President Barack Obama had spoken on the telephone with Chinese President Hu Jintao following comments by Obama administration officials that China was manipulating its currency. Wen did not rule out a devaluation of China’s currency, but said Beijing would keep the renminbi "at a balanced and reasonable level." He also downplayed hopes that China would use its foreign exchange reserves to help the International Monetary Fund and World Bank tackle the current global economic crisis.