Philippine Central Bank Holds Key Interest Rate

(RTTNews) - As expected, the Philippine central bank on Thursday kept its overnight borrowing or reverse repurchase rate at 4% and overnight lending or repurchase rate at 6%.

In a statement, the central bank said current policy interest rate settings remain appropriate. The inflation outlook remains manageable, with the latest BSP baseline projections indicating within-target inflation in 2010 and 2011 as demand-side pressures remain modest and inflation expectations well-contained.

Meanwhile, the current movements of asset prices, particularly in the equities and property markets, do not appear to pose any significant short-term challenges to the economy.