By Xin Zhiming (China Daily)
Updated: 2007-07-21 08:42

Related readings:  Central bank: Inflation could lead to rate hike  Securities become residents' top investment option  Another interest rate hike depends on CPI  China may raise interest rates twice this year China raises benchmark interest rates by 0.27%, 03/2007

The adjustment equals about two interest rate hikes of 27 base points each and, combined with the interest rate hike, will help hold back strong investment and lending, he said.

"Given the strong economy, any single adjustment alone will not be enough."

The government has not abolished the tax on deposit interest income because it may want to test the waters to see the impact of its macroeconomic regulation.

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