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Manila cbank seen holding rates to support growth

MANILA: The Philippine central bank is expected to leave interest rates on hold on Monday after a string of rises since June, signalling a shift of priorities towards protecting growth in the face of the global credit crisis. Nine of 11 analysts polled on Friday said the central bank would keep its interest rates steady to support growth after it had raised rates by 1 percentage point since June to combat inflation. Two forecast a 25 basis point rate rise. The analysts also forecast that annual inflation was 12.3 percent in September, edging back from a 17-year high in August of 12.5 percent. Rate cuts are moving up the policy agenda globally as central banks brace for the impact of the global credit crisis. The Philippines overnight borrowing rate stands at 6% and its overnight lending rate is 8%. In Asia, China and Taiwan cut their policy rates last month to cushion their economies from a global downturn. reuters

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