SHANGHAI (Reuters) - There is no concrete basis for depreciating the yuan over the long term given China's current growth rate, but more two-way volatility is unavoidable while reforms proceed, the Financial News, a paper owned by China's central bank, said in a commentary on Monday.

The report said that with the outlook for U.S. interest rate increases intact, existing looser capital controls are bound to result in some capital outflows. However, the paper said that the outflows were essentially dictated by economic forces rather than nervous investors fleeing the country.

Although the Federal Reserve declined to hike U.S. base interest rates at its most recent meeting on June 15, many market participants still expect one or more hikes later in 2016.

The yuan has sold off against the dollar by around two percent since mid April, in what investors say is partly a reaction to expectations of future U.S. interest rate increases.

China shocked global markets with a sharp devaluation of the yuan in August 2015 in what authorities said was a step towards a more market-oriented exchange rate mechanism. A further slide in the yuan later that year was also a major contributor the global market volatility in late winter.

(Reporting By Nathaniel Taplin; Editing by Shri Navaratnam)