MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) is in no hurry to raise interest rates.

Bangko Sentral ng Pilipinas Gov. Amando Tetangco appears to be reluctantly leaning toward holding rates steady for as long as possible, worried about attracting hot-money inflows that boost an already strong peso.

The Federal Reserve's vow to hold US rates near zero for "an extended period" and possibly increase "quantitative" easing has complicated the Philippine bank's efforts to boost rates back toward normal, Tetangco said Wednesday. The Philippine central bank must be "mindful" that rate differentials are favoring emerging-market economies and boosting risk appetite to invest in such markets, he said.

Manila shares have soared 33% this year to record highs, while the peso is up 5% against the dollar, around two-year highs.

The stronger local currency benefits Philippine importers but hurts exporters and business-process outsourcing, a fast-growing industry that generates thousands of higher-paying jobs. After a deputy governor warned about excess volatility Thursday, the central bank intervened, traders said, buying as much as $300 million when the US currency fell to P43.88, boosting it back above P44.00.