Siwei: The rate hike is imperative

"Financial Network", reporter Liao Zongkui Hu Junying Ten NPC Standing Committee vice chairman, the International Financial Forum (IFF) Chairman Siwei in the November 9 Diaoyutai State Guesthouse held in 2010 International Financial Forum meeting Gap, reporters said that the current China is in negative interest rates, and the inflation momentum remains unabated,　　Raising interest rates is imperative. But Siwei added that "there is a dilemma in raising interest rates on the one hand and higher interest rates on the other, while increasing the inflows of hot money." "For the short-term inflation situation, Siwei judged that China's oil imports are very large, the rise in international energy prices will lead to the rise of imported inflation."　　Because inflation has inertia, the first three quarter CPI was 2.9%, September is as high as 3.6%, the future monthly CPI to 4% is very likely to achieve the year 3% inflation target is difficult. The market is now buzzing with the Fed's second round of quantitative easing (QE2) and the so-called "currency war". In this regard, siwei that without too much emphasis on the "currency war", the United States in its own need to take a QE2, but the dollar is the international currency, which will inevitably make liquidity output to other countries.　　Emerging market countries face pressure from capital inflows and currency appreciation. "This is the Fed's greatest stimulus, and if there is a third, it would be a disaster," Siwei quoted former Fed chairman Walker as saying in a word he had said to the U.S. QE2 policy. (Stock market Weekly feeds)