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MANILA: The Philippine central bank said Thursday it had kept interest rates unchanged but would phase out "crisis response" measures introduced during the global financial meltdown.
The key measures focused on liquidity for banking institutions, but the central bank said they were no longer needed as the Southeast Asian nation's economy was showing strong signs of improvement.
"The Monetary Board noted that a broad range of indicators point to increasing momentum in domestic economic activity," it said in a statement after the policy-setting body's monthly meeting.
"Given ample liquidity and the continued stability of financial markets, the Monetary Board... decided to phase out liquidity-enhancing crisis response measures," it added.
It slashed by a third to 40 billion pesos (US$874.89 million) the amount it can lend to banks to help them meet temporary liquidity needs.
The central bank also tightened rules that qualify banks for lending from that facility. The measures will take effect on Monday.
The central bank's overnight borrowing rate was kept steady at 4.0 per cent while the overnight lending rate stayed at 6.0 per cent. These rates have been in place since August last year.
In explaining its decisions, the central bank cited a 42.5 per cent year-on-year rise in Philippine exports in January.
"Export growth is likely to gain more traction as the global economic outlook improves," it said.
The central bank also said the inflation outlook remained "manageable".
- AFP/yb
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