China's central bank governor hints at further interest rate cuts+

BEIJING, March 6 Kyodo -
China's central bank governor said Friday that China's efforts to combat the
impact of the global financial crisis is taking effect, but added challenges
are severe and indicated the central bank stands ready to lower interest rates
further.
Zhou Xiaochuan, governor of the People's Bank of China, pointed to signs of a
possible turnaround in the nation's economy at a press conference held on the
second day of the National People's Congress, or parliament.
''We can see signs of improvement in economic figures,'' Zhou said. ''This
shows our policies have started taking effect.''
But the current economic crisis is of the kind that has not been seen in years,
he said, adding that ''there is still significant room to fine-tune monetary
policy,'' in comments believed to be hinting at possible interest rates cuts.
China lowered its interest rates for the first time in six and a half years in
September. It further reduced the rates four times in an attempt to boost
lending and investment amid the global economic slowdown.
Zhou also reaffirmed at the news conference that the central bank will keep the
rate of the Chinese yuan ''basically steady.''
Premier Wen Jiabao said in a speech at the opening of the parliament session on
Thursday that the government will aim at achieving about 8 percent economic
growth in 2009, even as the country suffers the impact of the global financial
crisis.
==Kyodo