SHANGHAI, Jan 19 Reuters China is expected to keep benchmark lending rates unchanged for a fifth month in January, a Reuters survey showed, although analysts think cuts next month are probable after the central bank pledged steps to boost a COVIDravaged economy.

The imminent golden week holiday, the decision by the People39;s Bank of China to leave its policy rate unchanged this week and a new mortgage rate mechanism have made a cut in the loan prime rate LPR on Friday unlikely.

The upcoming LPR announcement, on the last working day before the Lunar New Year break, may not be the best moment, Mark Williams, chief Asia economist at Capital Economics wrote in a note to clients. We think next month is more likely.

A poll of 33 market watchers conducted by Reuters this week showed 21 or 64 predicted no change to benchmark LPRs, which serve as the pricing reference for bank lending.

The oneyear LPR currently stands at 3.65, while the fiveyear LPR is 4.30. China last cut both LPRs in August.

Eleven respondents forecast a cut to the fiveyear LPR while seeing no change to the oneyear tenor. Only one respondent predicted a cut to the oneyear LPR.

China39;s economy grew just 3 in 2022, far below the official target but the government39;s abrupt end to its the zeroCOVID policy has fanned hopes of a robust recovery.

Analysts also noted that there39;s less urgency to implement cuts to the fiveyear LPR a reference rate for mortgages after China this month established a…