Chinese government researcher suggests further rate cuts in second half of year.

China is likely to cut banks' reserve ratio and interest rates in the second half of 2021 to support its economy, according to policy advisors and economists. The country's economy rebounded faster than expected in Q1 but lost momentum at the beginning of Q2. Low inflationary pressures in China will provide room for monetary easing, said Zhang Ming, a researcher at the Chinese Academy of Social Sciences. China cut the reserve requirement ratio for the first time in 2023 in March but has kept its benchmark lending rate unchanged this year.