(1888PressRelease)
October 30, 2007 - China's economy expanded at an annual rate of 11.5 per cent in the year's third quarter, it has been revealed.
As a result, measures to hasten currency appreciation and increase borrowing costs have been advocated in order to reduce inflation and prevent asset bubbles.
Indeed, Wang Qing, chief China economist at Morgan Stanley in Hong Kong, told Bloomberg that action may be taken in the very near future.
"The central bank may raise interest rates immediately," he said.
"We expect the yuan to appreciate more quickly over the next three months as part of measures to cool the economy."
Central bank governor Zhou Xiaochuan said last week that more interest rate rises were possible amid concerns about rising asset prices.
However, Li Xiaochao, a spokesperson for the National Bureau of Statistics in Beijing, said that the fact that the rate of growth had slowed from the 11.9 per cent figure recorded in the previous quarter was evidence that progress was already being made.
"Due to macro-economic controls, we have turned the economy from being an over-heating one to being one of speedy growth," he told the BBC.
Further analysis of the impact of an appreciating yuan on the Chinese economy could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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