"We need the economy to grow at a certain pace in order for structural reform to be carried out," said the source, who requested anonymity.
The People's Bank of China has maintained a prudent monetary policy since 2011, raising or cutting interest rates in line with shifts in the economy. The pro-active fiscal policy has been in place since the depths of the global crisis.
The PBOC has cut interest rates six times since November last year and reduced banks' reserve requirement ratios (RRR), or the amount of cash that banks must set aside as reserves.
The government has also stepped up spending on infrastructure projects and eased restrictions on home buying to boost the sluggish property market.
"Considering the strong headwinds in economic growth, we might have further RRR cuts and benchmark rate cuts so we maintain our call that there may be four RRR cuts and two more benchmark rate cuts in 2016," said Yang Zhao, Chief China Economist at Nomura.