SHANGHAISINGAPORE, July 19 Reuters China is expected to leave benchmark lending rates unchanged on Monday, while more market participants project further monetary easing to aid the economy following weakerthanexpected secondquarter economic data, a Reuters poll showed.

A fragile yuan, China39;s lower interest rates versus other major economies, monetary policy divergence and narrowing interest margins at commercial banks remain the key constraints limiting Beijing39;s easing efforts, market watchers said.

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 PBOC.

The survey of 36 market watchers found 23, or 64 of all respondents, expect the oneyear and fiveyear LPRs to stay unchanged. This was lower than a 70 majority who picked a steady outcome in the LPR poll conducted last month.

Among the remaining 13 participants, four expected a steady oneyear LPR but a reduction to the fiveyear rate, and the other nine respondents saw cuts to both tenors.

A pickup in market expectations of further monetary easing comes after data showed that China39;s economy slowed in the second quarter, as a protracted property downturn and job insecurity weighed on domestic demand, keeping alive expectations Beijing will need to unleash more stimulus.

We continue to see no mediumterm lending facility MLF rate cuts for the rest of 2024, but believe a 1020…