SHANGHAISINGAPORE, May 17 Reuters China is widely expected to hold benchmark lending rates steady on Monday, a Reuters survey showed, although expectations are growing for a cut in the mortgage reference rate as the authorities scramble to boost housing.

The loan prime rate LPR, normally charged to banks39; best clients, is calculated each month after 20 designated commercial banks submit proposed rates to the People39;s Bank of China.

The survey of 33 market watchers, conducted this week, found 27, or 82 of all respondents, expect the oneyear and fiveyear LPRs to stay unchanged.

Among the other six respondents, four predicted a steady oneyear LPR but a five to 20basispoint reduction to the fiveyear tenor, while the remaining two projected similar cuts to both rates.

Most new and outstanding loans in the world39;s secondlargest economy are based on the oneyear LPR, now at 3.45. The fiveyear LPR, which serves as the mortgage reference rate, is at 3.95 after a February cut to shore up the property market.

In the latest step to support property, China will allow local government authorities to buy some homes at reasonable prices to provide affordable housing, the official Xinhua news agency said on Friday. The property sector and weak retail continued to drag on the economy last month, even as industrial output beat forecasts, data showed on Friday.

The central bank left a key policy rate unchanged when rolling over maturing mediumterm lending facility loans on…