The Philippine central bank expects the economy to weather any risks emerging in global markets and saw no need to alter monetary policy settings despite low inflation and slowing growth, its governor told Reuters.

The Philippines was one of the world's fastest growing economies in 2014, expanding by 6.1 percent, but faltering exports and slow government spending resulted in an unexpectedly marked slowdown to 5.2 percent in the first quarter.

Amando Tetangco, governor of the Bangko Sentral ng Pilipinas (BSP), saw plenty of reasons to hold the policy interest rate PHCBIR=ECI steady at 4 percent - where it has been since October - rather than take a chance on a cut with inflation running below 2 percent.

"We are in a position that we can first wait and observe. We are in a good situation right now," Tetangco said in an interview at his office in Manila.

Reasons to be careful, he said, included the potential threat of an extended El Nino dry weather phenomenon and possible increase in electricity prices.

An economist by training, the two-time central bank governor was mindful of risks posed by the Greek debt crisis and worrying slowdown in China, but he believed the Philippines was well-placed to withstand any turbulence in global markets.

"In our view the potential impact of Greece and China on us should be manageable," Tetangco said.

The Philippines has become a star performer among emerging markets since its reformist president, Benigno Aquino, took office in 2010.

But while investors are expected to pull money out of some emerging markets when U.S. interest rates eventually rise, Tetangco said there was no need for the Philippines to move in sync with the Federal Reserve.

Tetangco said meeting this year's 7-8 percent growth target would be challenging, but the economy remains on a solid footing with domestic demand still strong and credit and money supply growing at a healthy pace.

"We will be data dependent, if there is a need to change. And it can be monetary policy, it can be other policies like macroprudential," the career central banker said. "At this time, we don't see a need to change."

Turning to liquidity management, Tetangco said the central bank is refining operational aspects of a planned term auction facility, and the short-term special deposit account facility was part of the review.

The central bank has four more policy meetings this year, with the next on Aug. 13. Most analysts polled by Reuters last month expected Philippine rates stay where they are for the rest of the year, though some said a rate cut or rate hike were possible.

Felipe Medalla, one of the seven member of the central bank's policymaking Monetary Board, said on Friday that reducing banks' required reserves - currently at 20 percent - would have more impact on economic growth than a policy rate cut, especially if inflation falls below 1 percent.