China "doing right thing" in raising interest rate to curb inflation: Jim Rogers

16:46, December 08, 2010      

Email | Print | Subscribe | Comments | Forum 

Financial expert Jim Rogers said on Tuesday that China's Central Bank was doing the right thing by raising interest rate to curb inflation in China right now.

"As we may all know that China is facing serious inflation problems. However, the Central Bank of China is doing the right thing to curb the inflation by raising interest rate and commercial banks' required reserve ratio," Jim, chairman of Rogers Holdings, told Xinhua at a press conference held by Thomson Reuters.

Regarding the cause of inflation in China, Jim said he did not know much detail about it but believed it had something to do with the excessive liquidity in the market.

"The massive money coming both domestically and abroad caused the excessive liquidity in the market and pushed up prices," he said.

He also criticized the new round of U.S. quantitative easing policy, saying it was "totally wrong" that the Federal Reserve tried to stimulate the U.S. economy by pumping a large amount of money into the market.

"Printing money only makes things worse, not better," he said.

He also held that the Fed's quantitative easing policy aggravated the inflation problem in China.

"The expectation that China may further raise its interest rate and the widening interest spread between China and the United States will attract 'hot money' flow into China's stock market or commodity market, which also partly caused China's inflation," he said.

Nevertheless, Jim still expressed confidence in China's economy and its currency.

"I own U.S. dollar, yen, Australian dollar, Canadian dollar, and RMB. I am not sure about other currencies, but I am sure about the RMB, which is a strong currency, maybe the safest currency right now."



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Citizens watch fireworks exploding over the Jingtian Lake during a music firework show in Shanghai, east China, Sept. 30, 2011, on the eve of the National Day. (Xinhua/Pei Xin)
  • A member of the media takes a look at a Bluecar, an electric-powered car made by French company Bollore, at a media presentation in Vaucresson, west of Paris, yesterday. The Bluecars have a range of 250 kilometers in urban use and a maximum speed of 130km per hour, and will be available to rent in the streets of Paris under the name of Autolib. The four-seater Bluecars will be positioned at 1,200 stations in the French capital, where customers can pick them up and drop them off, and will be available around the clock. Users must have a valid driver's license and pay a subscription fee to borrow one of the vehicles.
  • Tourists watch a performance about an ancient court trial. (Photo/Xinhua)
  • U.S. President Barack Obama (4th L, front) shakes hands with outgoing Chairman of the Joint Chiefs of Staff Admiral Mike Mullen (1st R, front) as Vice President Joe Biden (3rd L, front), Secretary of Defense Leon Panetta (2nd L, front), and Army General Martin Dempsey (1st L, front) look on during the Chairman of the Joint Chief of Staff Change of Responsibility Ceremony at Joint Base Myer-Henderson Hall in Arlington, the United States, Sept. 30, 2011. Army General Martin Dempsey succeeded Mike Mullen to become the 18th Chairman of the Joint Chief of Staff on Friday. (Xinhua/Zhang Jun)
  • Chinese national flag guards escort the flag across the Chang'an Avenue in Beijing, capital of China, Oct. 1, 2011. More than 120,000 people gathered at the Tian'anmen Square to watch the national flag raising ceremony at dawn on Oct. 1, in celebration of the 62th anniversary of the founding of the People's Republic of China. (Xinhua/Luo Xiaoguang)
  • Pedestrians walk along the barrier set by police on Wall Street in New York, the United States, Sept. 30, 2011. Police set up the fences to keep away the demonstrators of the Occupy Wall Street campaign. (Xinhua/Shen Hong)
Hot Forum Discussion