MANILA, Philippines -- (UPDATE) Philippine central bank Governor Amando Tetangco said on Wednesday that the US Federal Reserve's 75 basis point cut in interest rates will have no immediate impact on local policy.

Last week, ahead of Tuesday's rate-setting meeting by the Fed, the Bangko Sentral ng Pilipinas (Philippine central bank) left its key policy rates steady due to rising inflation pressures but took measures to pump more liquidity into the system in an effective easing.

The central bank holds its next policy meeting on April 24.

"Although this should have no significant immediate impact on our own policy rate setting, we are mindful of the impact of a prolonged US slowdown on our own economy and the direction of capital flows between developed and emerging markets," he said in a message to reporters.

"We continue to monitor developments on oil and commodity price movements, the current key risk to our inflation outlook," Tetangco added.

The Fed slashed its overnight rates by 75 basis points to a three-year low of 2.25 percent to avert a deep recession and financial market meltdown from tight credit conditions.

The Fed has cut its rates by a steep three percentage points since mid-September, including two percentage points since the start of the year.

The Philippine central bank has cut its headline overnight rates by a total of 250 basis points since July 2007.

Its overnight borrowing rate now stands at 5.0 percent, the lowest since May 1992, and the lending rate is at 7.0 percent.

Last week, the central bank tweaked its short-term special deposit account window which it uses to control money supply. It removed the two-, three- and six-month tenors, and cut the rates on the remaining shorter-term maturities to boost bank lending.

Annual inflation climbed to a 16-month high of 5.4 percent in February, and the central bank has said it expects inflation to rise further with no let-up on oil and food price increases.

The central bank has said it expects inflation to creep up to 3.5 to 4.4 percent this year, within the target of 3.0-5.0 percent, against 2.8 percent in 2007. (Reporting by Rosemarie Francisco; editing by Raju Gopalakrishnan and Jacqueline Wong)