Beijing is "firmly resolved" to rein in excessive investment and to move ahead with financial reforms, the head of China's central bank said on Sunday.
"The Chinese government is firmly resolved to curb over-investment in certain economic sectors and to promote economic and financial reform," People's Bank of China Governor Zhou Xiaochuan said in remarks prepared for delivery to a meeting of the International Monetary Fund and World Bank.
"We will pay close attention to macroeconomic developments and remain prepared to take the necessary steps to consolidate the gains in macroeconomic management," he said in the remarks, which were obtained by Reuters.
Economic policy-makers around the globe are concerned that China's economy is at risk of over-heating. While China has already taken steps to curb the fast pace of investment, many projects are still in the pipeline.
The IMF said last week China would likely need further steps to cool the economy and prevent a troubling inflation rise.
Chinese officials, however, say they need to show some tolerance for inflation as they try to push the economy ahead speedily and cut into unemployment.
Zhou told Reuters and a small group of Chinese media on Friday the Chinese economy was likely to slow only slightly in 2005 from a pace that should top 9 percent this year.
In contrast, the IMF forecast a fairly pronounced slowing to just a 7.5 percent advance in 2005. "We are more optimistic," Zhou said.
Some observers had begun to speculate that Beijing may raise interest rates to keep inflation under wraps. However, Zhou said recent data had not shown a need for a rate hike, although elevated prices and swift investment bore watching.
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