Barclays said investors should expect neutral monetary policy with a bias toward tightening liquidity through open market operations.

FORBES: Barclays Warns On China

Andrew Burns, head author of the report, said developing countries need to reduce their fiscal vulnerabilities by lowering short-term debt levels, reducing their budget deficits and returning to a more neutral monetary policy stance instead of constantly cutting rates to historic lows.

FORBES: India, Better This Year

China's central bank Gov. Zhou Xiaochuan said last month that he is on guard against inflation and that monetary policy is now "neutral, " after a slightly easy policy stance in the past year.

WSJ: Investors Seek Clarity From People's Bank of China