PBOC says Wu's remarks don't rule out rate action

The People's Bank of China said Wednesday 14 February that comments by its vice governor published yesterday do not rule out the use of interest rates as an appropriate tool to absorb excessive liquidity.

People's Bank of China vice governor Wu Xiaoling said in an article published in the official People's Daily Tuesday that China's excessive liquidity problems cannot be resolved by taking interest rate action unless the central bank also proactively manages money supply.

Wu said the central ba