The Philippine central bank kept its policy rates steady for the sixth month, its policymaking body said in a statement on Thursday.

The overnight lending rate stays at three percent, the level at which the central bank imposed an interest rate corridor starting June 3, 2016.

While the Monetary Board’s decision is “ based on its assessment that inflation continues to be manageable, with a gradual return to the inflation target range expected over the policy horizon”, it acknowledges some risks.

“The overall balance of risks surrounding the inflation outlook remains tilted to the

upside, owing largely to the potential impact of the government’s broad fiscal reform

program as well as the pending petitions for adjustments in electricity rates. Increased

uncertainty in global economic prospects continues to be a key downside risk,” the Monetary Board said.

Inflation rose to a two-year high of 2.7 percent in January due to increases in non-food items such as water and power rates and gasoline prices. DMS