It was the sixth straight month the central bank (BSP) had held rates steady and analysts have said the likelihood of another rate hike was diminishing after total increases of 75 basis points last year.

"The Monetary Board noted that prevailing conditions for prices continue to provide room for the BSP to keep policy rates steady in the near term," the central bank said in a statement.

"In particular, the recent easing in oil prices and continued stability of the peso should help keep inflation pressures in check in the near term."

All 11 economists polled by Reuters had expected the central bank to leave its overnight rates at 7.50 percent for borrowing and 9.75 percent for lending — the highest in more than four years.

"Demand and credit indicators continue to suggest softness while liquidity growth has stabilised to single digit levels.

Inflation expectations on the whole appear to remain stable," the central bank said. (Reuters)

Annual inflation in March was steady from February at 7.6 percent which analysts said was proof that there was no runaway price pressure after the government raised the national sales tax rate to 12 percent from 10 percent in February.

The central bank expects inflation to remain high in the first half as prices adjust to the higher sales tax rate. But inflation should trend lower in the second half as good harvests boost food supply, aiding a general stabilisation of consumer prices.

M3 money supply growth in February rose 9.4 percent from a year earlier, accelerating from an annual rate of 8.4 percent in January. The annual pace had been braking since peaking at 15 percent in August. (Reuters)