China kept its benchmark lending rates unchanged for the 14th consecutive month on Monday, in line with market expectations.

The stable benchmark lending rates indicate that policymakers remain patient, keeping interest rates steady despite weaker-than-expected economic data for the second quarter, which highlighted uneven growth in the world's second-largest economy.

The one-year loan prime rate remained at 3%, while the five-year rate stayed unchanged at 3.50%. In a Reuters poll last week of 23 market participants, all predicted no change in either rate.

* Slow Growth

China's economy grew at its slowest pace in more than three years in the second quarter, missing expectations, as weak household consumption overshadowed strong manufacturing and export sectors, raising concerns about the sustainability of the unbalanced growth model in the long term. The People's Bank of China earlier this month said the economy faces a structural imbalance between strong supply and weak demand, pledging to maintain appropriate expansionary monetary policy and increase financial support to revive domestic consumption. Attention now turns to the upcoming meeting of the Politburo of the ruling Communist Party of China, where policymakers are expected to set the economic policy agenda for the second half of the year.

Kelvin Lam, senior China economist at Pantheon Macroeconomics, said: "Attention now shifts to the Politburo meeting scheduled for the end of July, which will focus on the economy... We will look for signs that policymakers recognize the importance of stabilizing household budgets, and possibly prepare a more comprehensive plan to stabilize the real estate sector and break the negative feedback loop between falling asset prices and declining consumer confidence."

Lynn Song, chief economist for Greater China at ING, said: "On the monetary front, low inflation, although positive, should not hinder the People's Bank of China from easing monetary policy further if needed." She added: "Policymakers have made efforts to maintain ample liquidity, and we expect a strong chance of an interest rate cut within this quarter."