Citing inflation modestly edging higher, but likely solid economic expansion in 2025, the Bangko Sentral ng Pilipinas held policy interest rates steady, on Thursday.

Bangko Sentral ng Pilipinas held its target reverse repurchase rate at 5.75%, the overnight deposit rate at 5.25%, and the lending facility rate at 6.25%, the central bank's Monetary Board announced.

Bangko Sentral ng Pilipinas has an inflation target band of 2% to 4%, which in December the central bank said it would maintain through 2028.

Inflation is within the central bank's target, though at the high end of the band, said Bangko Sentral ng Pilipinas, in a prepared statement.

"For 2025, the risk-adjusted inflation forecast rose to 3.5% from 3.4%, in the previous meeting. The risk-adjusted forecast for 2026 is unchanged at 3.7%. Inflation expectations remain within the target range," Bangko Sentral ng Pilipinas.

The central bank did not issue a gross domestic product (GDP) growth outlook for 2025, but said "domestic growth prospects continue to be firm."

In 2024, the nation's GDP expanded by 5.6% on year, the central bank noted in its February Philippine Economic Update.

For 2025, the nation's Department of Management and Budget has forecast the Philippines' GDP growth at 6.5% to 7.5% on year.

Despite holding rates steady on Thursday, Bangko Sentral ng Pilipinas said it still plans to become more accommodative late in 2025.

"Looking ahead, the BSP (central bank) anticipates continuing its measured shift to less restrictive monetary policy settings, even as previous policy adjustments further work their way through the economy,' said Bangko Sentral ng Pilipinas.