With double-digit inflation still hounding the Philippines as of last month, the Bangko Sentral ng Pilipinas may deviate from the move by central banks that lowered interest rates amid fears of a global recession economists said on Thursday.

BSP Governor Amando Tetangco Jr. said “the coordinated move, taken together with improved inflation expectations, gives us greater monetary-policy space.”

But no immediate action is expected from the central bank.

“We will continue to monitor the evolving situation to make sure our assessment is fresh and our policy stance appropriate,” said Tetangco, who is currently in Washington, D.C., for the annual meetings of the International Monetary Fund and World Bank.

The BSP may keep key interest rates unchanged for the rest of the year, waiting for inflation to further drop to comfortable levels before adopting a relaxed monetary policy.

If ever the BSP would lower its policy rates, it would likely be by 25 basis points, or currently at 6.0 percent for overnight borrowing and 8.0 percent for overnight lending, by a minimal 25 basis points, the economists said.

“It might be premature for the BSP to cut interest rates since inflation is still at high levels. The headline figure is lower in September but core inflation is still rising,” said Jonathan Ravelas, market strategist at Banco de Oro Unibank.

Inflation eased to 11.9 percent in September after steadily rising in the previous 10 consecutive months due to soaring food and energy prices. This compared with a 17-year high of 12.5 percent in August.

“I think there’s room for a rate cut but the central bank is unlikely to be aggressive in policy easing since the Philippines is not in a much serious situation,” said Song Seng Wun, regional economist at CIMB GK brokerage house in Singapore.

Meanwhile, Finance Secretary Margarito Teves said the Philippine economy has shown resilience in the face of global market uncertainties.

“While we are not completely insulated from these external shocks, we can withstand further pressures if we continue to be vigilant and maintain confidence in our country,” Teves said in a statement.

Teves said the economic and fiscal reforms implemented in recent years “have also given us the flexibility to provide assistance to affected sectors, if necessary.”

“We hope that the global financial situation will stabilize soon as world leaders act together to address the challenges,” he added.

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