* Central bank keeps key rate at record low of 4.0 pct
* Rates on hold since August
* Rate decision was widely expected
MANILA, Dec 17 (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) --------------------------------------------------------
December 2009 4.0 6.0
November 2009 4.0 6.0
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:
- All 10 economists in a Reuters poll last week had forecast the central bank would leave the key overnight borrowing rate unchanged at 4.0 percent. A slim majority forecast the first rate hike will come in the third quarter of next year. [ID:nMAN356129]
- Philippine annual inflation jumped to a six-month high of 2.8 percent in November due to higher costs of food, clothing and services. But it remained within the government's 2.5-4.5 percent inflation target for 2009. [ID:nMAN476818]
- Central bank Governor Amando Tetangco has repeatedly said the monetary authority sees no urgency to withdraw stimulus given to the economy because the inflation outlook remained favourable.
- The central bank slashed rates by a total of 200 basis points between December 2008 and July to soften the blow of the global recession on the local economy.
LINKS
- Preview: What might central bank do.....[ID:nSGE5BD05H]
- Reuters' poll on policy rates...........[ID:nMAN356129]
- Interview with c.bank deputy governor...[ID:nMAN472559]
(Reporting by Karen Lema and Manolo Serapio Jr.)