ha said the central bank may need to consider using other tools such as raising reserve requirements for commercial banks or central bank bills if further tightening is needed.
ba shusong, a researcher with the chinese academy of social sciences, agreed. he said the central bank has little room for further interest rate rises because the united states may be entering a rate-reduction period.
the renminbis interest rate has been lower than the us dollar. shrinking the difference between interest rates of the yuan and the greenback could prompt an influx of more hot money into china seeking profits from the renminbi.
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