China is likely to keep a key loan rate steady next week, but a cut is expected by mid-September after a policy review by the U.S. Fed, as Beijing steps up efforts to lower borrowing costs to support growth.

Analysts say a cut in the People’s Bank of China’s (PBOC) medium-term lending facility (MLF), which reflects commercial banks’ long-term liability cost, will likely signal a reduction in the new revamped Loan Prime Rate (LPR), launched this week. However, they don’t expect a cut in the MLF rate on Monday when the next batch of loans mature. The MLF now acts as a guide for the LPR, which is set on the 20th of each month.

The LPR was reduced by 6 basis points on Tuesday, following its weekend designation by the PBOC as the new lending benchmark for all fresh loans to households and businesses.

The central bank is “likely to cut the one-year MLF rate by around 10 basis points before September 20,” said Lu Ting, Greater China economist at Nomura in Hong Kong.

“We thus expect LPRs to drop by around 10 bp on September 20.”