Domestic liquidity grows by 5.4 percent, year-on-year, in November

Preliminary data show that domestic liquidity (M3) grew by 5.4 percent year-on-year to about ₱15.6 trillion in November.

This is the same as the rate of expansion recorded in October. On a month-on-month seasonally-adjusted basis, M3 increased by 0.6 percent.

Domestic claims rose by 10.8 percent year-on-year in November from 11.0 percent in the previous month with the steady pace of bank lending to the private sector.

Claims on the private sector grew by 10.4 percent in November from the same growth rate posted in October, due to the sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government also rose by 13.8 percent in November from 14.7 percent in October owing mainly to the borrowings by the National Government.

Meanwhile, net foreign assets (NFA) in peso terms declined by 1.8 percent in November from the 1.4-percent contraction in October.

The NFA of banks fell mainly on account of higher bills payable. Similarly, the Bangko Sentral ng Pilipinas’ NFA position contracted by 1.0 percent in November.

Looking ahead, the BSP will ensure that domestic liquidity conditions remain appropriate to support the prevailing stance of monetary policy, and continue to prioritize its inflation control and financial stability objectives.