The Philippine central bank, Bangko Sentral ng Pilipinas (BSP), slashed key policy rates by half a percentage point on Thursday, as widely expected by the market, although growth in the fourth quarter of last year came in stronger than expected.

The monetary authority cut its overnight borrowing rate to 5.0 percent and its lending rate to 7.0 percent. It also said there was room for further easing later.

It was the second 50 basis point cut in as many months and followed similar policy easing by central banks worldwide to stave off the effects of the global downturn.
  
A majority of economists polled by Reuters on Monday had forecast a 50 basis point cut with expectations the central bank would aim to support growth this year following sustained deceleration in inflation from a near 17-year peak of 12.5 percent in August.
  
The government said earlier on Thursday that the economy expanded 4.6 percent in 2008, supported by higher than expected 4.5 percent annual growth in the fourth quarter.
  
The Reuters poll forecast the economy would grow at a slower pace of 3 percent this year, the lowest in seven years, as recession in the country's key trading partners hits demand for export goods. Remittance inflows from Filipino workers overseas could also be affected, economists said.