MANILA, Philippines (Xinhua) - Monetary officials today decided to keep key rates steady as inflation is expected to go down in the next two years.
Bangko Sentral ng Pilipinas (Philippine central bank or BSP) Governor Amando M. Tetangco, Jr. said in a press briefing that overnight borrowing and overnight lending rates have been left unchanged at 4 percent and 6 percent, respectively.
The interest rate on the reverse repurchase, repurchase and the special deposit account facility and the reserve requirement ratios were also maintained.
"The Monetary Board's decision is based on its assessment of a more manageable inflation environment, based on latest baseline projections indicating within-target inflation for the policy horizon," Tetangco said.
BSP cut its forecast average inflation to 4.4 percent from 4.5 percent for this year, and to 3.7 percent from 3.8 percent for 2015. The BSP has also projected that inflation will average 2.8 percent in 2016, down from a previous projection of 3 percent.
The Monetary Board raised key policy rates in July and September to rein in inflation.