China's Economy May Overshoot 8% Growth Target - 2005-03-08
Chinese policy makers are being overly sanguine in expecting they will be able to direct the economy to a ``soft landing'' in 2005 without having to adjust either the currency value or interest rates.
``I don't see the necessity to hike interest rates again,'' Guo Shuqing, director of China's State Administration of Foreign Exchange, told reporters in Beijing last week. The foreign- exchange regulator also ruled out a large-scale appreciation in the yuan, which has been pegged at 8.3 to the U.S. dollar for a decade.
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