SHANGHAISINGAPORE, Nov 20 Reuters China left benchmark lending rates unchanged at a monthly fixing on Monday, matching expectations, as a weaker yuan continued to limit further monetary easing and policymakers waited to see the effects of previous stimulus on credit demand.

Recent data shows the recovery in the world39;s secondlargest economy remains patchy with industrial output and retail sales surprising on the upside but deflation gathering pace and few signs the struggling property market will bounce back any time soon.

While the economy still needs more policy stimulus, an escalation of monetary easing would add unwanted downside pressure on the Chinese currency.

The oneyear loan prime rate LPR was kept at 3.45 and the fiveyear LPR was unchanged at 4.20.

Most new and outstanding loans in China are based on the oneyear LPR, while the fiveyear rate influences the pricing of mortgages.

In a poll of 26 market watchers conducted last week, all participants predicted no change to either the oneyear or fiveyear LPR.

The steady fixings came after the central bank kept its mediumterm interbank liquidity rate unchanged last week. The oneyear LPR is loosely pegged off the mediumterm lending facility MLF and market participants typically see changes in the MLF rate as a precursor to adjustments in the LPR.

The PBOC injected 1.45 trillion yuan worth of oneyear MLF loans into the banking system last week but kept the rates on those loans unchanged.

The liquidity boost…