The central bank has been playing down reports that it might raise interest rates to cool off the economy right after the May Day Holiday. 
 
But an interest rate hike seems inevitable as it is widely considered to be a measure that may work after a slew of measures including raising banking reserve ratios have so far fallen short of the authorities' expectations.

Many economists including renowned scholar Wu Jinglian have voiced their expectation for a hike in interest rates despite denials by banking officials.

However, there are fears of a possible world economic slump led by China's slowdown.

Is the impact as big as some expect? When can we expect an adjustment to interest rates?

Earlier my colleague Tu Yun talked to Liu Xiaochang, a financial analyst with the Nanjing-based Huatai Securities. Ms. Liu was among those that insisted the central bank may refer to interest rate hikes as the next step when banking officials and some economists still cast doubt over such a measure.

That was Liu Xiaochang, a financial analyst with Huatai Securities, on when we may see any adjustments to interest rates in China.
 
(CRI May 12, 2004)