Governor Zhou says Chinese authorities may loosen controls on borrowing costs

A suitable time to implement changes is being negotiated between the People's Bank of China and select government officials.

The country is also faced with twin risks of economic downturn and rising inflationary pressures. 

Here's more from the OCBC Treasury Research:

The People's Bank of China Governor Zhou said that the authorities may loosen controls on borrowing costs and deposit rates, and that they are currently in talk with other government officials for a suitable time to implement these changes.

Zhou also indicated that risks of an economic downturn and rising inflationary pressures still co-exist right now. Meanwhile, the HSBC Flash PMI for April came in at 49.1, up from 48.3 previously but still below the neutral 50 mark.