06/29 5:40:53 PM
MANILA (AFP) - The Philippine central bank on Thursday kept its benchmark interest rates unchanged for a ninth straight month despite expectations the US Federal Reserve will hike rates again later in the day.
The Central Bank of the Philippines maintained its overnight borrowing rate at 7.50 percent and its overnight lending rate at 9.75 percent, the same level since a 25 basis-point hike nine months ago.
"The Monetary Board believed that the evidence on current and expected inflation continues to support the maintenance of policy settings in the meantime," a central bank statement said.
It cited central bank forecasts which "remain suggestive of a deceleration in inflation in the second half."
However it also warned that there were still risks to inflation, mainly signs that high oil prices will likely be maintained "in the near-term.
"Rising global interest rates will be closely monitored in view of their impact on capital movements and inflation," the statement added.
The decision comes amid expectations the US Federal Reserve will hike its key target rate by a further 25 basis points to 5.25 percent at the conclusion of its two-day policy meeting later Thursday.
http://www.philstar.com/philstar/NEWS_FLASH062920068590_14.htm
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