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China’s growth no longer at break-neck speed: OECD

China's economy is "cruising" at a rate that is more sustainable than its previously break-neck speed of growth, the head of the Organisation for Economic Co-operation and Development (OECD) said Friday.

The world's second-biggest economy has set a 2015 growth target of 7 percent; a goal with which the OECD concurs and one that would mark China's weakest expansion in 25 years.

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In 2014, China set a growth target of 7.5 percent that it narrowly missed.

"This [7 percent] is the stated goal; we think it is a more achievable goal," OECD Secretary-General Angel Gurría told CNBC in a phone interview from Beijing.

"It's no longer break-neck speed, but when you are at break-neck speed sometimes you break your neck, so it's preferable to have a cruising speed that is more sustainable and we think that is the case," he added.

Tomohiro Ohsumi| Bloomberg | Getty Images

China's economy is slowing as it transitions to a consumption-led growth model from one fuelled by investment and exports – a move that many economists say is necessary to secure a more sustainable long-term growth outlook.

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The economy expanded 7.4 percent last year, down from 7.7 percent in 2013 and a peak of just over 14 percent in 2007.

Last month, China's central bank cut interest rates, easing monetary policy to help support a weakening economy.

Gurría said he saw the process of liberalisation in both interest rates and the currency regime continuing at a gradual pace. In recent years, Beijing has taken a number of steps to internationalise the yuan and increase flexibility in currency markets, such as widening the currency's trading band against the dollar.

"There is a gradual liberalisation movement with regards to interest rates. The mirror of that is greater flexibility of the exchange rate – which is the only way to guard against external shocks," Gurria said.

"What I see is a gradual movement towards more liberalisation of interest rates and foreign exchange rates," he added.

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