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2008.12.1604:21:00UTC+00China's Central Bank Governor Foresees Further Rate Cuts

Tuesday, China's central bank Governor Zhou Xiaochuan said interest rates may fall further until mid 2009 given the moderation in inflation. He stated that the central bank's first concern is the cost of capital for enterprises. Secondly, he said, the interest rate should be connected with the consumer price index. Further, he noted that a price cut will not have much help for exporters as demand continued to weaken.

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