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.”