President Benigno S. Aquino III, ushered by PTAA secretary general and Travel Tour Expo 2014 executive director Marciano Ragaza III, tours the booths during the Philippine Travel Agencies Association (PTAA) 21st Travel Tour Expo 2014 at the SMX Convention Center, Seashell Drive, Mall of Asia Complex in Pasay City on Friday(February 14) with the theme: “Love Life, Love Travel”. The Department of Tourism is projecting 2014 tourism revenues to hit P1.4 trillion, higher by P110.6 billion of the expected earnings from domestic tourism in 2013 due in large part to a forecasted increase in the daily expenditures of domestic tourists. (MNS photo)

President Benigno S. Aquino III, ushered by PTAA secretary general and Travel Tour Expo 2014 executive director Marciano Ragaza III, tours the booths during the Philippine Travel Agencies Association (PTAA) 21st Travel Tour Expo 2014 at the SMX Convention Center, Seashell Drive, Mall of Asia Complex in Pasay City on Friday(February 14) with the theme: “Love Life, Love Travel”. The Department of Tourism is projecting 2014 tourism revenues to hit P1.4 trillion, higher by P110.6 billion of the expected earnings from domestic tourism in 2013 due in large part to a forecasted increase in the daily expenditures of domestic tourists. (MNS photo)

Manila, Philippines | AFP | – The Philippines monetary authority on Thursday left its key interest rates untouched, following signs that inflation had become more manageable.

Central bank governor Amando Tetangco said the monetary board was keeping overnight borrowing and lending rates at 4.0 and 6.0 percent respectively.

“The monetary board’s decision is based on its assessment that the inflation environment continues to be more manageable,” Tetangco said.

He said inflation expectations were lower than before with signs that the rate would be in line with the government target of 3.0 to 5.0 percent inflation for the whole year.

The monetary board previously raised the key rates by 25 basis points in both July and September in an attempt to stave off higher inflation.

Tetangco conceded that economic growth had slowed to 5.3 percent in the three months to September due partly to a series of powerful typhoons, a resulting contraction in agriculture and a slowdown in public spending.

But he said: “while global economic conditions remain challenging, prospects for domestic activity continue to be firm, supported by strong domestic demand, robust bank lending growth, and buoyant business sentiment.”