The Philippines’ central bank decided to maintain its key interest rate at a record low, as widely expected, on Thursday.

The monetary board of Bangko Sentral ng Pilipinas, governed by Nestor Espenilla, held the overnight reverse repurchase facility at 3.00 percent.

The rates on the overnight lending and deposit facilities and the reserve requirement ratios were also kept steady.

“The Monetary Board believes that prevailing monetary policy settings continue to be appropriate,” the bank said.

Although inflation has trended higher due to utility and fuel prices, inflation path is likely to stay within the government’s 2-4 percent target range for 2018-2019.

Further, the bank said the outlook for domestic economic activity remains firm, supported by positive consumer and business sentiment and ample liquidity.

Looking ahead, fears that the economy is overheating are exaggerated, Gareth Leather, a senior economist at Capital Economics, said. Unlike the consensus, which is expecting rate hikes next year, interest rates will remain on hold throughout 2018, the economist added.

The material has been provided by InstaForex Company –