Domestic demand, while stabilizing, remains tepid and economists widely agree that more growth supportive policies are highly warranted.
China's overall inflation profile remains soft so more stimulus from the People's Bank of China (PBOC) is likely necessary, said Hao Zhou, senior emerging markets economist for Asia at Commerzbank.
But officials can't rely on monetary tools alone amid the challenge of excess capacity in the industrial sector, he warned.
"If you continue to have low interest rates, nobody will exit the market. There will still be oversupply so prices will remain low...So at the end of the day, the central bank will still have to maintain its easing bias but let structural policies do more work."
The PBOC should announce at least one 25 basis-point interest rate cut this year, according to ING.
A flood of Chinese economic indicators for the month of May released in recent days has produced mixed messages about the health of the economy.
Exports extended their fall with a worse-than-expected 4.1 percent annual drop, while surveys last week showed activity in the manufacturing and services sectors was relatively unchanged.
May's data deluge is set to continue, with industrial output, new loan and money supply reports due over the next few days.
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