Experts: China will continue to lower reserve requirements

China may continue to lower in bank reserve requirements to stimulate economic growth, but will postpone the reduction of interest rates in case of emergency, said economists.

New measures to support monetary policy may be necessary, since China’s economic growth may not accelerate after the Q2 of 2012, or the pace of recovery may be too slow, experts said, referring to the weak global demand.

The People’s Bank of China cut the key rate on June 7, the first time after the global financial crisis. Reduction in rates was a surprise to investors, who fear that these measures may indicate that the second-largest economy in the world expects a sharp slowdown in the economy.

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