China is unlikely to consider an one-off revaluation but may widen the yuan's trading band, a monetary official said in remarks published on Monday. "According to our research, the option of a one-off appreciation is not applicable, but we may widen the daily trading band of the yuan, say, moving up to 1 percent from 0.5 percent currently," the China Business News quoted an unnamed official as saying.
Zhang Jianhua, director of the research department of the People's Bank of China, told the Shanghai paper separately that Beijing should focus on managing inflation expectations. Without further steps, inflation could well become a problem, he said.
Beijing has set an inflation target of 3 percent this year, but Zhang said 3.5 percent was the pain threshold. Consumer prices in February rose 2.7 percent from a year earlier. Zhang said gross domestic product growth in the first quarter could have been as high as 12 percent due to a low base of comparison in 2009. The figures are due to be issued on Thursday.
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