International Monetary Fund Managing Director Rodrigo de Rato said he welcomed China's decision to widen the yuan's trading band and urged the government to do more to cool its economy.

The decision was a "step in the right direction," said de Rato at a press conference near Potsdam, Germany, where he is attending a meeting of the Group of Eight finance ministers. China also raised interest rates and curbed bank loans on Friday in an effort to tame a runaway economy and ease trade tensions with the United States and Europe. The decision to widen the currency band failed to appease US lawmakers, who said they will push ahead with punitive legislation unless the yuan appreciates at a faster pace.