Zhou Xiaochuan: Steadily advancing market-based interest rate reform Speech by Mr Zhou Xiaochuan, Governor of the People’s Bank of China, at the Conference “China: Making Financial Markets Work”, jointly sponsored by the Bank of China, Euromoney and Hong Kong & Shanghai Banking Cooperation, Beijing, 3 December 2003. *  *  *  It’s my honor to attend Euromoney’s Conference in China.
On the other hand, today’s low sensitivity of inflation to slack, along with the limited ability to cut interest rates in a recession, means it can be more difficult to achieve our 2 percent inflation objective on a sustainable basis.