The time is ripe for China to cut banks' reserve requirements as slowing inflation gives more room for easing to stabilize growth, said China Securities Journal.

A "timely" reduction by an "appropriate magnitude" can release liquidity and spur lending, the newspaper, published by Xinhua News Agency, said in a front-page commentary on Tuesday. The ratio stands at 20 percent for large banks, a relatively high level, the newspaper said.

A cut in the amount of cash banks must keep as reserves would be the fourth such reduction since November and follow the first lowering of interest rates since 2008.

Agencies - China Daily