UPDATE 1-Philippine cbank extends rate easing pause, approves $11 bln budget support

* BSP keeps key rate at record-low 2.25% for second meeting
* Inflation moderating, but 'uncertainty remains elevated'
* BSP approves govt request for 'provisional advances'

(Adds cbank chief quote, more details, background)
By Neil Jerome Morales
MANILA, Oct 1 (Reuters) - The Philippine central bank kept
its policy rates steady on Thursday, extending its monetary
easing pause for a second successive meeting while approving $11
billion in funds to help government efforts to mitigate the
impacts of the coronavirus.
The Bangko Sentral ng Pilipinas (BSP) maintained the rate on
the overnight reverse repurchase facility PHCBIR=ECI at a
record-low 2.25%. Rates on the overnight deposit and lending
facilities were likewise kept steady at 1.75% and 2.75%,
respectively.
The BSP at the same time approved the government's request
for a new 540 billion pesos ($11.1 billion) of "provisional
advances" intended as budgetary support, Governor Benjamin
Diokno said.
Twelve of 13 economists Reuters surveyed ahead of Thursday's
policy meeting had expected the BSP to keep rates on hold, while
one had projected a cut of 25 basis points.
"The Monetary Board is of the view that a continued pause
will allow prior measures by the BSP to further work their way
through the economy," Diokno said in a statement that he read at
a briefing.
The BSP has slashed rates by a cumulative 175 basis points
between February and June in an effort to revive the
recession-hit economy.
The central bank revised down its average inflation forecasts
to 2.3% for this year, from 2.6% previously, and to 2.8% for
next year, from 3%. Those were still within the 2%-4% target
range for both years.
It sees inflation for 2022 at 3% versus 3.1% previously.
Diokno said inflation is expected to remain moderate given
potential disruptions to economic activity due to the pandemic,
but he said liquidity in the financial system remained ample.
While signs of a recovery in economic activity have emerged,
he said "uncertainty remains elevated" while new infections
continue in large numbers.
The Philippines has the highest number of COVID-19 cases in
Southeast Asia with 314,079 confirmed infections as of Thursday.
A total of 5,562 patients have died.