China will likely hold interest rates steady after 1Q GDP growth met
expectations, ANZ economists say in a research note. While rising energy prices
could speed up an end to months of deflation, price increases in China remain
too low for a rate hike, they note. China's March urban unemployment rose to
5.4% from 5.3% in previous month. ANZ thinks that employment, rather than
economic growth, has become a primary policy concern for China. Beijing is
expected to use structural measures to tackle real economic challenges,
especially youth unemployment, they say. ANZ maintains its full-year GDP growth
forecast at 4.8%, while noting risks from the Middle East conflict.
