The cut in the United States' interest rates would not stop China's interest rate hike , and would not create greater difficulties to the country's inflation, said an expert from Morgan Stanley.

Wang Qing, chief economist for Greater China of Morgan Stanley, said if the inflation remains at a high level, China will increase interest rates, regardless of cuts in the US.

The US Federal Reserve slashed benchmark interest rates by a half-percentage point on September 18, which is considered by some to mark the beginning of a series of rate cuts.

The rate policy of the People's Bank of China has focused on domestic assets control and commodity price inflation risks control, instead of appreciation of the RMB.

Wang Qing said the policy changes show the confidence in the capital account controls effectiveness.

The interest rate margin between US dollars and yuan has dropped to 200 basis points from 300.

Figures from the China Foreign Exchange Trading System today show that the central parity of yuan against the US dollar is 7.5175.