China will allow the yuan to appreciate by 5%

Goldman Sachs' chief economist Jim O'Neill was quoted as saying that China might take measures to let the yuan appreciated by about 5% so as to slow down its fast growing economy.

"I have a strong opinion that they're close to moving the exchange rate," Jim O'Neill told Bloomberg. "Something's brewing. It could happen anytime."

"They need to do something to slow the economy down and deal with the inflation consequences," he was quoted as saying. O'Neill believes China's economy is growing between 12% and 14%.

Meantime, the World Bank forecast Chinese economy to grow by 9% this year faster than the global growth of 2.7%.