* C.bank keeps key rate at record low of 4.0 pct
* Rate decision was widely expected
* Analysts forecast rates to remain steady through Q1
MANILA, Oct 1 (Reuters) - The Philippine central bank announced its rate decision following a regular policy meeting on Thursday:
KEY DATA: Announcement date Borrowing rate Lending rate
(overnight, percent) -------------------------------------------------------- October 2009 4.0 6.0 August 2009 4.0 6.0 July 2009 4.0 6.0 May 2009 4.25 6.25 April 2009 4.50 6.5 March 2009 4.75 6.75 January 2009 5.0 7.0 December 2008 5.5 7.5 November 2008 6.0 8.0
Note: The Philippine central bank holds a rate-setting meeting every six weeks. CONTEXT:
- The Philippine central bank kept its policy rates steady to allow previous rate cuts to work its way through the financial system. It is also waiting for more indicators showing economic growth is on solid footing.
- The central bank had cut its benchmark rates by a total 200 basis points within an eight-month period starting December to soften the blow of the global recession on the local economy. - All 10 economists in a Reuters poll on Monday had forecast the central bank would leave the key overnight borrowing rate unchanged at 4.0 percent for the second meeting in a row. [ID:nMAN435331]
- Central bank Governor Amando Tetangco said last week the time was not yet right to implement an exit strategy from an easier policy, with monetary and fiscal stimulus still needed to drive economic recovery. [ID:nMNB002465]
- The IMF said on Thursday the central bank should keep interest rates steady for now. [ID:nMNA002396]
- Tetangco said on Tuesday weekend floods that devastated large areas in the capital and nearby provinces were unlikely to result in big spikes in consumer prices and threaten the 2009 inflation target of 2.5-4.5 percent. The central bank forecasts inflation to average 3 percent this year.
- Philippine annual inflation is expected to come in at 0.0-0.9 percent in September, from a 22-year low of 0.1 percent in the previous month, the central bank said on Monday. [ID:nMNB002471]
LINKS:
- Scenarios: What might central bank do.......[ID:nSP516429]
- Reuters' poll on policy rates .............[ID:nMAN435331]
- Q&A on Philippine policy rates outlook......[ID:nMAN99481]
- Recent interview with c.bank governor .....[ID:nMAN300369]
(Reporting by Karen Lema and Manolo Serapio Jr.)