SHANGHAI, Dec 18 (Reuters) - China’s benchmark lending rate is likely to remain steady for an eighth straight month at its December fixing on Monday, a Reuters survey showed, as the economy continues to recover from the fallout of the COVID-19 pandemic. All 34 traders and analysts in a snap Reuters poll conducted this week predicted no change in either the one-year Loan Prime Rate (LPR) or the five-year tenor . The one-year LPR was last at 3.85% after 30 basis points of rate cuts this year, and the five-year rate stood at 4.65% after 15 bps of cuts in 2020. Recent upbeat data pointing to China’s steady economic recovery has prompted some speculation policymakers could look to start exiting loose monetary policy. But the latest monetary policy report suggested any exit from a targeted easing to a neutral stance would be gradual. “Economic fundamentals imply no need for the People’s Bank of China (PBOC) to rush into tightening,” Qu Hongbin, chief China economist at HSBC in Hong Kong, said in a note. “Growth in total social financing may moderate amid less government borrowing, yet the one-year LPR is expected to stay at 3.85% through 2021.” The PBOC said China will maintain “normal” monetary policy as long as possible in its third quarter monetary policy report, reiterating previous comments made by its governor Yi Gang. The expectation for a steady fixing also came after the PBOC made its biggest ever injection of medium-term funds this week to shore up liquidity and kept interest rates steady for an eight consecutive month. The medium-term lending facility (MLF) is one of the PBOC’s main tools in managing longer-term liquidity in the banking system and serves as a guide for the LPR. The LPR is a lending reference rate set monthly by 18 banks. All 34 responses in the survey were collected from selected participants on a private messaging platform. (Reporting by Reuters China fixed income team; Editing by Ana Nicolaci da Costa)