China May Cut Ratio Without Altering Monetary Stance

Economists are betting China will cut banks’ reserve requirements in the coming weeks even as limited loosening over the past four months indicates leaders want to maintain a clampdown on inflation and property prices.

Authorities have held off for more than two months on announcing a third reduction since November in the reserve-requirement ratio, bucking earlier predictions from institutions including Credit Agricole CIB and Haitong Securities for the government to have acted by now.