SHANGHAI, April 15 Reuters China39;s central bank kept borrowing costs of its mediumterm policy loan unchanged for the third straight month as expected on Friday, despite Beijing calling for more monetary stimulus to cushion an economic slowdown.

The People39;s Bank of China PBOC said it was keeping the rate on 150 billion yuan 23.52 billion worth of oneyear mediumterm lending facility MLF loans to some financial institutions unchanged at 2.85 from the previous operation, to maintain banking system liquidity reasonably ample, according to an online statement.

Thirtyone out of the 45 traders and analysts, or nearly 70 of all participants in a Reuters poll, forecast no change to the MLF rate.

Instead, markets increasingly expect an imminent reduction in the amount of cash banks must set aside as reserves, after the State Council, or cabinet, called on Wednesday for the timely use of such monetary tools.

Global investment banks including Citi expect such a reserve requirement ratio RRR reduction could be delivered as early as Friday, with many expecting more easing measures still on the way.

We doubt the forthcoming RRR cut will be the last easing move either, given the severe headwinds facing China39;s economy, said Julian EvansPritchard, senior China economist at Capital Economics.

We continue to anticipate another 20 basis points of policy rate cuts this year and a further acceleration in credit growth.

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