Siwei: It is imperative to raise interest rates but not the time to see China

Every reporter Wan Min from Beijing National People's Congress former vice chairman Siwei on December 28, said that China's interest rate hike is imperative, but the timing of interest rates can not be seen in China alone. In his keynote speech, he talked about China's massive credit growth last year, which has played a big role in achieving the economic growth rate of 8 and tackling the financial crisis, has seen its side effects start this year, mainly by a massive increase in local debt, a partial bubble in the housing market, a partial bubble in financial assets, and inflation. But the renminbi's role in the international monetary system should be enhanced.　　Siwei to participate in the 2010 Golden Phoenix Financial Management ceremony to make the above expression. In the meeting Gap, Siwei reporters that from the Twelve-Five central planning, starting domestic demand is a very important aspect, improve the purchasing power of the people. From the perspective of monetary policy, regulation has three means, interest rate, reserve ratio, open market operation.　　But China's open market operation is not very developed, unlike the United States once a day, so now the main means is interest rates and reserve ratio. "The reserve ratio has increased many times, now nearly 19%, the increase in the surplus may not be too big, and each increase of 0.5% can freeze the liquidity is not too much, so I think the main means still depends on interest rate, I see it is imperative, because without raising interest rates, people's income shrink, the bank's deposits shrink, Nor is it easy to deal with inflation. "He also believes that the risk of raising interest rates is that the influx of hot money is also not up to the goal of reducing liquidity, so this is a dilemma." "The rate hike is imperative, but the timing of the hike cannot be seen in China alone." ”