MANILA- The Philippine central bank set its inflation target for 2021-2022 at an "appropriate" 2-4 percent on Thursday, unchanged for a third year running, the central bank said on Thursday.

"Improved productive capacity of the economy, fuelled by higher infrastructure investments by the national government, supports achieving robust economic growth amid a low and stable inflation environment," the central bank said.

Inflation, which hit a near-decade peak of 6.7 percent in September and October due to higher taxes and rising oil and food prices, is expected to return to the 2-4 percent inflation target this year. The central bank raised rates by a total 175 basis points to 4.75 percent last year.

The central bank kept rates steady at its last two meetings and some economists expect policymakers to cut rates and reduce banks' required reserves this year.

(Reporting by Neil Jerome Morales and Karen Lema; Editing by Nick Macfie) ((neiljerome.morales@thomsonreuters.com; +632 8418914; Reuters Messaging: neiljerome.morales.thomsonreuters.com@reuters.net))