The policy-making body of the central bank kept rates steady during its meeting on Thursday as it said “the outlook for inflation remains manageable.’

The central bank’s overnight reverse repurchase facility have been steady at three percent since May 2016.

However, inflation has been rising since the third quarter of 2016, hitting a two-year high of 3.3 percent last February from 2.7 percent in January.

“The balance of risks surrounding the inflation outlook remains titled toward the upside, given the transitory impact of the proposed tax reform program as well as possible adjustments in transportation fares and electricity rates,” a statement by central bank governor Amando Tetangco Jr said.

Tetangco notes “lingering uncertainty over the prospects of the global economy , due in part to possible shifts macroeconomic polities in advanced economies, continues to pose a key downside risk to the inflation outlook.”

But Tetangco said “domestic economic activity is projected to remain firm, supported by buoyant household consumption and private investment, increased government spending and ample credit and liquidity.” DMS