Philippine monetary officials decided on Thursday to keep key policy interest rates on expectations that the inflation level will remain well anchored for the rest of the year.

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.

The reserve requirement ratios were kept steady as well.

Monetary officials said the latest baseline forecasts continue to indicate that inflation will likely settle within the 3-5 percent target range in 2012 and 2013.

They also expect the local economy to remain strong despite global uncertainties

The Monetary Board noted that tensions in the Middle East and rising oil prices present an upside risk to the country's inflation outlook. But it expects the weak global economy and the stable peso to temper inflation.