MANILA, Philippines – Monetary officials slashed on Thursday the special deposit account (SDA) rate to 2.5 percent in a bid to push out idle funds to help fund economic activity and boost growth amid a low inflation environment. Policy rates were also kept steady at record-lows of 3.5 percent for overnight borrowing and 5.5 percent for overnight lending, the Bangko Sentral ng Pilipinas (BSP) said. The rate of the SDA— deposits of banks and trust departments with the BSP— was cut by 50 basis points from three percent. This was the second cut made for the year, following a similar reduction in January. “The Monetary Board’s decision to maintain the policy interest rates at their current levels is based on its assessment that the inflation environment over the policy horizon is likely to remain manageable,” BSP Governor Amando Tetangco, Jr. told reporters. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Inflation is seen to average 3.3 percent for 2013 and 2014, slightly faster than the January forecasts of three percent and 3.2 percent, respectively. Both are still within the low-end of the official 3-5 percent target range. “The revisions (to forecasts) were because of the higher actual outturn for the January inflation,” BSP Assistant Governor Ma. Cyd Tuaño-Amador said in a briefing. Inflation accelerated to 3.4 percent in February from 3 percent in January. This put the average so far to 3.2 percent. Amador said with prices under control, BSP could allow more liquidity to flow out of the Read More …