Analysts at TD Securities note that the People's Bank of China (PBoC) surprisingly kept its 1-year loan prime rate (LPR) unchanged at 4.15% (mkt 4.10%, TD 4.10%), while also keeping its 5-year LPR unchanged at 4.8%.

• "The market impact is likely to be limited especially as prior to the announcement PBoC injected net CNY 630bn in open market operations ahead of likely liquidity withdrawals next month ahead of Lunar New Year holidays. We expect China to continue to incrementally cut rates, with further cuts in the LPR, MLF and RRR likely, albeit gradually."