More policy easing likely as economy recovers

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 said.

They also said that policy easing is likely to continue in the following months, including a small uptick in the fiscal 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.

Their comments came as data from the National Bureau of Statistics showed on Saturday that the country's consumer price index, which is a key indicator of inflation, rose 0.3 percent year-on-year in April after a 0.1 percent gain in March.