The World Bank's latest report on China said it saw significant signs of a cooling in the economy, but warned that acceleration risks remain and said the government should be ready to raise interest rates again if needed. The bank's quarterly report said that despite higher-than-expected 9.5% growth in 2004, there were "clear signs" of a slowdown in domestic demand and investment growth. It said the government's monetary policy and administrative measures taken last year, including the first interest rate rise in nine years, were showing results. It said domestic demand growth and consumer price inflation had both come down, with "buoyant export growth and moderating import growth." Nonetheless the bank warned that a renewed pickup in investment growth is "not inconceivable" — for instance if authorities have difficulties in keeping administrative controls effective.