Fed rate cut should ease pressure on China to hike rates: China Daily

HONG KONG (AFX-ASIA) - The latest Fed rate cut narrows the differential between yuan and dollar interest rates and should ease pressure on the Chinese authorities to hike rates, the China Daily reported, citing a People's Bank of China official.	    The newspaper said the one-year deposit rate for U.S. dollars at banks in China is currently 3.81 pct while the rate on yuan funds is 2.25 pct.	    The PBoC official, who declined to be named, said the narrower gap between yuan and dollar rates will ease the pressure on the Chinese authorities for an interest rate hike.	    The paper quoted Li Yang, deputy director of the Finance Research Centre of the Chinese Academy of Social Sciences, as saying that the narrowing of the rate differential will also facilitate the liberalisation of yuan interest rates in the next few years. 

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