MANILA - As expected, the Bangko Sentral ng Pilipinas (BSP) has decided to keep its interest rates steady even as consumer prices rose to a 5-month high in October.

The BSP maintained its overnight borrowing and lending rates during its policy meeting on Thursday at record lows of 4% and 6%, respectively.

The country's overnight borrowing and lending rates have been kept since July, with analysts saying that no change is likely until next year.

Philippine annual inflation came in at 1.6% in October, spiking up from 0.7% in September and 0.1% in August.

BSP Governor Amando Tetangco said the figure was anticipated given the impact of recent typhoons on food supplies and prices.

"The uptick was primarily due to supply pressures in agricultural products brought about by the recent typhoons," he told reporters in a text message.

He added: "We expect this to be largely temporary, with the underlying near-term trend remaining manageable."

The BSP said it may raise its 2009 average inflation forecast of 3.03% and 2010 estimate of 3.43%, mainly due to high oil prices and storm damages to farm output. With a report from Reuters