The Philippine central bank kept its key interest rates unchanged on Thursday as policymakers assessed the current setting as appropriate.
The Monetary Board of the Bangko Sentral ng Pilipinas decided to keep the overnight reverse repurchase rate at 3.00 percent and the overnight lending rate at 3.50 percent.
The reserve requirement ratios were likewise left unchanged. The outcome of the meeting came in line with expectations.
The central bank had reduced the reverse repurchase rate to 3 percent from 4 percent when it shifted to an interest rate corridor system on June 3.
The bank expects inflation to settle slightly below the 2-4 percent target range in 2016 and rise toward the mid-point of the target in 2017 and 2018.
Inflation expectations continue to be broadly in line with the inflation target over the policy horizon, the bank said.
While prospects for global economic growth remained subdued, domestic economic conditions continue to be firm.
Increased uncertainty over prospects for growth and monetary policy action in major advanced economies requires prudence in policy settings, the BSP noted.
Gareth Leather, an economist at Capital Economics, said the central bank is under no pressure to cut rates to support the economy. There is little sign that strong growth is feeding through into an increase in price pressures.
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