China's market-based one-year loan prime rate (LPR), came in at 3.35 percent on Friday, unchanged from the previous month, according to a statement by the National Interbank Funding Center under the People's Bank of China (PBOC).

The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged at 3.85 percent.

The monthly data serves as a pricing reference for banks and is based on rates of the PBOC's open market operations.

In a note, Wen Bin, chief economist at China Minsheng Bank, said that LPRs may still be lowered this year.

Wen said the U.S. Federal Reserve's first rate cut in over four years on Wednesday further opens up room for China's monetary policy adjustment.

China's economic fundamentals are showing signs of slowing down, Wen said, adding that lower rates are necessary to reduce the financing costs of the real economy and promote the recovery of domestic demand. He said rate cuts would also boost market confidence and economic vitality as well as help China achieve its economic targets.

(Cover via CFP)