Although the economic situation is sound, we need to pay attention. |
Banks are in now in a dilemma, so most dare not drop the rate due to the fierce competition. |
Depositors' incomes will be lower if banks drop the deposit rate. Most banks are not ready to face the aftermath. |
If more and more enterprises and industries sell their U.S. dollars or foreign exchange maybe the yuan will have appreciation pressure. We don't want these kinds of capital flows to have a very strong impact on the economic growth trend. |
If the yuan rises too rapidly, a lot of overseas investors might move their factories or companies out of China. |
It will take time to do so. It's a process. Every investor wants to optimize his own portfolio or investment structure but that doesn't mean that the portfolio will change overnight. |
That would increase unemployment and hurt our economy, and commercial banks could also face a difficult operating environment. |
The impact on the economy is that unemployment will increase and maybe commercial banks will face a difficult operating situation. It's a risk to our economy. |
We have a very good start for the foreign exchange regime ... We also want liberalization of interest rates. |