China's benchmark money market rate, the weighted average seven-day repo rate, tumbled 40 bps to 3.3027 percent at midday. Banks have shifted away from the cautious attitude that prevailed in response to the central bank's tightening bias. Some traders expect that additional policy easing could occur before the end of the year, but most expect rates to remain at or near their current levels. "From now until the end of the year, I think the market will basically stay at this level, but there are still some expectations of easing, so probably there will be some more small downward movements in rates," said a trader at a bank in Shanghai. Despite the fall in rates, trading volume was muted before midday, as traders waited for the market to settle on a price following the RRR adjustment. "There is still no consensus about the appropriate price," said the trader in Shanghai. A key factor influencing rates in the weeks leading up to New Year's will be the impact on liquidity of deposits or withdrawals this month, as banks often face increased demand for cash from corporate depositors at year's end. If demand for cash produce a large net withdrawal of bank deposits this month, money market rates could still increase. "Before year-end, I think liquidity is the main factor," said a trader in Nanjing, referring to how money rates will be determined. Benchmark five-year interest rate swaps fell 7 basis points to 2.7500, while 10-year IRS fell 27 bps, also to 2.7500.