RP rates seen on hold until at least Q1 2010: Reuters poll

MANILA - The Bangko Sentral ng Pilipinas (BSP) looks set to keep interest rates at a record low for the second meeting in a row on Thursday as a benign inflation outlook allows policymakers to focus on nurturing growth, a Reuters poll shows.

All 10 economists surveyed expect the BSP to keep the key overnight borrowing rate at 4%. They also forecast that rates will not change before the second quarter of 2010.

Economists do not expect the central bank to soon start unwinding liquidity policies, including a 2-percentage point cut in bank reserve requirements imposed in November 2008.

The bank ended a series of rate cuts totalling 2 percentage points in 8 months at its last meeting in August.

Central bank governor Amando Tetangco said in an interview with Reuters on Sept. 14 that monetary policy would remain "accommodative" until authorities were convinced that economic growth was on a solid footing.