China's annual economic growth accelerated to 10.2 percent in the first three months of this year from 9.9 percent in the previous quarter, strengthening the case for tightening steps, which may include raising required bank reserves and a quicker rise in the yuan.

But annual consumer price inflation slowed to 0.8 percent in March from 0.9 percent in February, extending a downward trend of recent months, government data showed. The central bank has forecast inflation could be around 2 percent this year.

The government has unveiled a series of tax and pricing reforms to better link its oil markets to global benchmarks and encourage energy efficiency to help sustain economic growth.

Separately, the Beijing Unirule Institute of Economics, an independent think-tank, said in a research report it expected the economy to grow about 10 percent in the second quarter.

The think-tank urged the central bank to widen the yuan's trading band to allow greater currency flexibility to help head off economic overheating, according to the report published in the China Securities Journal.

"Raising bank reserve requirements is feasible. But it will be more meaningful to let residents hoard more foreign exchange, reduce market intervention and widen the floating band," it said.