Saturday, February 19, 2011
Advice from 2nd biggest economy
"China needs to increase interest rates because real rates remain in negative territory, a central bank adviser said on Saturday. "It's not right to keep real interest rates in negative territory for a long time," Xia Bin, an academic member of the People's Bank of China's monetary policy committee, told reporters on the sidelines of a financial forum in Beijing". "Xia's comments come the day after China's decision to raise lenders' required reserves by 50 basis points, effective February 24, its second increase this year".