Financial Times FT.com

China mulls freer hand for central bank

By Richard McGregor in Beijing

Published: July 27 2006 18:32 | Last updated: July 28 2006 10:27

A Chinese central bank official has suggested economic policymaking could be more effective if the institution were free to manage interest rates independent of other ministries and direct central government oversight.

Liu Lida said in a little-reported speech to a conference at the weekend that the ability of the People’s Bank of China to adjust interest rates on its own would make such decision-making more effective and faster.

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