Official of PBC: low rate policies pressed by high rate of foreign currencies

An official of Peopleˇ¦s Bank of China said the maintenance of low rate policy was facing pressure of widening rate gap between RMB and foreign currencies.He said the low rate policies in past three years spelt positive influence in pushing economic growth and igniting capital market.He added low rate policies obviously had activated consumption, dragged down saving volume, stimulated capital market, and enabled enterprises to obtain financing ability by issuing shares.He said the low rate policies also had forced bond rate down and matched up active financial policies implemented by government.A lot of investments in infrastructure not only provided momentum to economic growth, but also motivated banking loans and bettered banking asset structure.The only challenge of low rate was the widening gap between RMB and foreign currencies. But the negative influence was weakened by severe capital management implemented in China.

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