Bangko Sentral ng Pilipinas decided to maintain the interest rate on the overnight reverse repurchase facility at 3%.

The BSP said Dec. 22 that it also maintained the interest rates on the overnight lending and deposit facilities. The reserve requirement ratios were also left unchanged.

The central bank said it decided to keep the interest rate based on its assessment of inflation dynamics. It expects average inflation to settle below the target range of 2% to 4% for 2016. Inflation is expected to return to a consistent path in 2017-2018 due to higher oil prices and strong domestic economic activity.