Friday December 19, 04:29 AM
China central bank downplays influence of US rate calls
BEIJING (AFP) - China's central bank chief downplayed talk of US interest rate moves influencing its own measures, insisting that Chinese economic conditions determined its decisions, state media reported on Friday.
"There's not necessarily a very close connection (with US rate cuts)," Zhou Xiaochuan, governor of the People's Bank of China (3988.HK - news) , was quoted as saying by the China Securities Journal.
"We make our decisions based on our own economic data."
His remarks came after growing speculation that China was increasingly coordinating its rate policies with the rest of the world.
The US Federal Reserve cut rates this week to unprecedented low levels, raising expectations that China would follow suit by slashing its rates.
China has cut interest rates four times since September, dropping the one-year lending rate from 7.47 percent to 5.58 percent.
The second of the four cuts, in early October, attracted particular attention because it coincided with similar actions by the central banks of the United States, the European Union and a number of other countries.
Analysts at the time said it ushered in a new period, precipitated by the global financial and economic crisis, when China would coordinate its monetary policies more closely with the rest of the world.
Zhou said earlier this week that interest rates in China would likely be cut in the short term as Beijing moved to boost consumer spending to offset slowing exports.
In an indication of slowing economic activity, China's consumer price index, the main gauge of inflation, rose 2.4 percent in November, the lowest level in 22 months.
Zhou was quoted in Friday's report as saying consumer prices would likely continue to weaken.
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