PBOC adviser Sheng: China economy improving, rate hike a possibility - RTRS

An adviser to the PBOC, Sheng Songcheng, said in an interview with Reuters, he expects interest rates to move upwards as the Chinese economy is on a steady improvement path.

Key Quotes:

"The economy is improving...so interest rates and prices will move in a positive direction"

"Under the right circumstances, if conditions allow, we can consider a rate hike" 

"In the past two years depreciation pressure on the yuan has been high, but (China) hasn't changed foreign exchange management rules. If you change the rules now, there will be market panic" 

"To stabilize the forex rate, you need to strongly emphasize to everyone, 'I won't change (the rules)'”