China said on Tuesday that steps taken by its monetary authority last year to contain “overheating” have been “successful”.
NEW DELHI: China said on Tuesday that steps taken by its monetary authority last year to contain “overheating” have been “successful”.
The monetary authority in China raised lending rates three times and deposit rates twice in 2006 to contain overheating.
“The measures proved successful,” Wu Xiaoling, deputy governor of People’s Bank of China (PBC), the country central bank, said.
Wu, however, declined to comment on the efficacy of the recent steps taken by the Reserve Bank of India to curb inflation. Wu is heading a 27-member Chinese financial sector delegation to India on an unofficial visit to share their experience in the financial sector with their Indian counterparts.
The delegation will participate in the India-China Financial Conference being organised in Mumbai on Wednesday and Thursday by the India China Economic and Cultural (ICEC) Council with the support of the China Society of Finance and Banking (CSFB) and Indian Banks’ Association (IBA).
The delegation had a meeting with the minister of state for finance S S Palanimanickam on Tuesday. They discussed the need for closer ties between the financial systems of the two countries.
Wu said the trade in financial services between the two countries accounts for a negligible share of the overall $25 billion bilateral trade turnover. There is a need to increase it to its potential, she said.
At the two-day conference in Mumbai the Chinese bankers would discuss with their Indian counterparts the ways to expand economic cooperation to insurance, banking, securities market and pension sectors. It would also include an interaction with RBI deputy governor Rakesh Mohan, she said.
According to ICEC Council president P S Deodhar, the focus of the Mumbai conference will be to understand the existing regulatory institutions and practices in the banking, insurance and capital markets of the two countries. It will also seek to understand to what extent the financial sector in the two countries are open to foreign service providers and what have been the regulatory concerns posed by foreign competition. At the end of the conference, a report will be prepared aimed at facilitating identification of possible financial services and sub-sectors for bilateral cooperation.
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