The heavy amount of maturing loans has stirred speculation the PBOC may replace it with a permanent injection of cash via a cut to banks' reserve requirements (RRR). ANZ's Xing said he expects the central bank to cut RRR in the fourth quarter to replace outstanding MLF loans. Some market analysts said Thursday's rate cut was also a reaction to major lenders' decision to lower deposit rates. The Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (AgBank), China Construction Bank, Bank of China and Bank of Communications cut deposit rates by 5 to 20 basis points (bps), according to statements on their websites. "It shows the PBOC wants to be more accommodating to banks in lowering their medium-term funding costs," said Gary Ng, Asia Pacific senior economist at Natixis. "Cutting the MLF rate at a larger scale can help shield the net interest margin."