China's reference lending rate remained unchanged on Monday, according to a statement on the People's Bank of China website, which was in line with market expectations as the central bank kept a key policy rate steady on February 15.

The Loan Prime Rate, based on the rate of PBOC’s Medium-term Lending Facility and quotes submitted by 18 banks, remains at 3.65% for the one-year maturity and 4.3% for over five years. The PBOC provided a net CNY199 billion one-year MLF this month, the third consecutive month of net injection, with the rate unchanged at 2.75% for a seventh month. (See: MNI PBOC WATCH: China’s LPR Seen Steady On Economic Recovery )

However, advisors and analysts said the PBOC should cut its policy rates and guide down the LPR, particularly the over-five-year rate, to boost confidence since household sector credit demand remains weak.