According to UOB Group's Global Economics & Markets Research team, the PBoC is expected to keep reducing its rates this year.

"Although we still expect PBoC to guide rates lower, the elevated headline inflation and slowing momentum in global central banks' easing will keep it on a measured and cautious stance as focus remains on improving monetary policy transmission through reforms and push for greater adoption of the Loan Prime Rate (LPR). We expect future LPR fixings to be moved by 5bps each month on average into mid-2020, with no further cuts to MLF. This will see 1Y LPR at 3.80% by mid-2020".