More policy easing likely as economy recovers


A worker at a textile factory in Fuyang, eastern China. — AFP

SHANGHAI: China’s economy is showing fresh signs of modest recovery, while pressures from still weak demand remain, heightening the need for more stimulus to bolster the world’s second-largest economy, analysts say.

They also said that policy easing is likely to continue in the coming months, including a small uptick in the financial impulse and further reductions in banks’ reserve requirement ratio – the proportion of deposits that banks must keep in cash as a reserve – and policy benchmarks for interest rates.

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