Forex

BEIJING (XFN-ASIA) - The governor of China's central bank said there is still room for interest rate hikes.

The People's Bank of China hiked rates an unprecedented six times last year. But the country is still struggling to deal with economic overheating and inflationary pressure.

Speaking in a nationally televised broadcast, central bank governor Zhou Xiaochuan said any decision on rate hikes would take into account the impact on consumption and the nation's capital markets.

He also noted that recent rate cuts by the US Federal Reserve have had some impact on China's interest rate policy.

The US has been cutting rates, just as China pushes rates higher, leading to upward pressure on the local currency and fresh policy challenges for the central bank.

Zhou gave no indication that an interest rate hike is imminent.