国际英语新闻：World Bank official says no case for yuan revaluation

He added there were dangers in China making any sort of significant concession.

"The US would take it for granted that China would do whatever it was asked to do and there would then be more demands in the future."

Liu Wei, president of Peking University's school of economics, told the forum revaluing the currency now would damage attempts to stimulate the Chinese economy.

"China's current urgent task is to stimulate the economy and encourage economic development, which does not allow us to make a decision about currency revaluation in the short term," he said.

Timmer from the World Bank urged the Chinese government to consider pegging the yuan to a basket of major currencies, rather than the dollar. It has been set at around at about 6.83 per dollar since July 2008.

"It would create more stability if the yuan was set against a weighted average of other currencies so the Chinese currency is not always following the dollar all the time," he said.

Timmer said that although he was not worried about inflation in China, he believed the current boom in property prices was much more uNPRedictable.

He said the 35 percent increase in the credit supply as a result of the stimulus package had helped fuel ever-higher house prices, particularly in major cities.

"In the real economy when you have inflation there is normally an equilibrium mechanism, which often means people spend less," he said.