China still has room to raise rates -c.bank chief

China still has room to raise interest rates to battle inflation, even as the United States is lowering its own interest rates, central bank governor Zhou Xiaochuan said on Tuesday.

Zhou, speaking to reporters following the closing session of the National People's Congress, or parliament, said that China needed to use a range of measures to fight inflation, including seeking to increase the supply of certain goods.

He added that Beijing was closely watching the fallout from the U.S. subprime mortgage woes that have caused turmoil across credit markets, but he did not elaborate.