Philippine monetary officials decided to keep key policy interest rates on expectations that inflation level will remain benign for the rest of the year, the Philippine central bank said on Thursday.

"The Monetary Board decision to maintain policy rates is based on its assessment that current monetary settings are appropriate and that inflation is expected to remain within target over the policy horizon," central bank governor Amando Tetangco Jr. said.

Philippine July inflation fell to a 22-year low of 0.2 percent on lower food and fuel prices.

The overnight borrowing rates or reverse repurchase facility (RRP) is steady at 4 percent while overnight lending or repurchase facility (RP) is at 6 percent. The interest rates on terms RRPs, RPs and special deposit accounts were also left unchanged.

(Xinhua News Agency August 20, 2009)