July 16, 2010 (Chinavestor) Royal Bank of Canada (NYSE:RY) lowered its estimate for China's 2010 GDP growth to 9.7% from 10% after the world's fastest growing major economy reported second-quarter GDP growth of 10.3% and lower-than-expected industrial output for the month of June. The bank also reduced its 2011 GDP forecast to 8.8% from 9%.
Royal Bank of Canada (NYSE:RY) cut its Chinese inflation forecast for 2010 and 2011 to 3% from 3.5% due to the lower growth rate and softer June consumer prices. The bank said it does not expect the People's Bank of China to raise interest rates this quarter, but kept its forecast for rate hikes in the fourth quarter and next year.
The bank’s economists also revised their forecast for the yuan’s appreciation to 6.60 per dollar at the end of 2010 from a previous 6.50, and changed their estimate for the end-2011 level to 6.20 per dollar from a previous 6.10, Bloomberg News reported.