China's 2010 GDP growth likely 10 percent

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BEIJING, Jan. 4 (UPI) -- China expects to register a double digit annual economic growth rate in 2010, the country's central bank governor said.

Zhou Xiaochuan, in a speech carried on the Web site of the People's Bank of China, said the country's economy had returned to normal and that the 2010 economic growth was estimated to reach about 10 percent, the state-run Xinhua news agency reported.

The governor called for prudence in setting macroeconomic policies and the need to conduct counter-cyclical adjustments against "over-expansion."

Zhou said the government would promote a market-oriented reform of the interest rate regime in a gradual and unwavering way.

China remains under pressure to control inflation and liquidity. Inflation hit a 28-month high of 5.1 percent in November, against the government's target to keep it far below that level.

Xinhua reported this week China was "very likely" to announce interest rate hikes in the New Year to cool the property market. Any such step would follow similar increases in October and December.