Central bank keeps policy rates steady

MANILA, Philippines  (Xinhua) - The central bank kept interest rates on hold on back of a benign inflation that is supportive of the country's growth.

Monetary officials decided in its policy meeting today to keep key overnight borrowing and lending rates, as well as interest for special deposit accounts across all maturities steady. Reserve requirements for banks were also kept on hold.

Overnight borrowing and lending rates currently stand at record lows of 3.5 percent and 5.5 percent. Special deposit account rates are at a record low of 2 percent across all maturities.

"Steady policy settings will allow policymakers to better assess evolving economic risks, given current volatilities in global financial markets," Central Bank Governor Amando M. Tetangco Jr. said in a briefing.

The central bank expects inflation to remain within its target range of 3-5 percent for 2013 and 2014 and between 2-4 percent in 2015.

Inflation has so far averaged at 2.8 percent since the start of the year up to the end of August.