China growth forecast raised to 9.5 percent by World Bank

It said consumption by both businesses and households would grow strongly, even though government stimulus measures were being pared back. But the bank warned that Beijing needed to cool inflation and try to cut the risk of a bubble in property prices.It urged China to let its currency appreciate to contain prices and to stop the economy overheating.

"Strengthening the exchange rate can help reduce inflationary pressures and rebalance the economy," the World Bank said in quarterly update on the world's third largest economy.Earlier this week, Chinese Premier Wen Jiabao accepted that inflation would be a major challenge as Beijing tried to keep its recovery going. However, he rejected criticism that China was keeping its currency undervalued in order to boost exports.