MANILA - The Philippine central bank left its key overnight borrowing rate steady at 3.0% on Thursday, saying inflation should settle within its target for this year and next.
Nine out of 10 economists in a Reuters poll predicted the central bank would stand pat on rates, following the widely expected move by the US Federal Reserve to raise interest rates last week. One economist had forecast a rate hike.
The Philippine central bank has not tinkered with interest rates since it raised the benchmark rate by 25 basis points in September 2014. Policymakers will meet next on May 11.
The bank also slightly lowered its inflation forecast for this year and 2018.
It now expects inflation to average 3.4% this year from its previous estimate of 3.5%, central bank deputy governor Diwa Guinigundo told a news conference.
The bank also slightly cut its inflation forecast for next year to 3.0% from 3.1% previously. It has a 2-4% inflation target for this year and next.