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

Preliminary data show that domestic liquidity (M3) grew by 5.4 percent year-on-year to about ₱15.4 trillion in October from the 5.2-percent (revised) growth in September. On a month-on-month seasonally-adjusted basis, M3 increased by 0.7 percent.

Domestic claims rose by 11.0 percent year-on-year in October from 11.2 percent (revised) in the previous month, due to the continued improvement in bank lending to the private sector.

Claims on the private sector grew by 10.4 percent in October from 10.3 percent (revised) in September with the expansion in bank lending to non-financial private corporations and households.

Meanwhile, net claims on the central government rose by 14.7 percent in October from 16.5 percent (revised) in September owing to the sustained borrowing by the National Government.

Net foreign assets (NFA) in peso terms declined by 1.4 percent in October from the 2.1-percent (revised) contraction in September. The NFA of banks fell mainly on account of higher bills payable. Similarly, the Bangko Sentral ng Pilipinas’s (BSP) NFA position contracted by 0.5 percent in October.

Looking ahead, the BSP will ensure that liquidity conditions continue to support domestic demand and economic activity, in line with its price and financial stability objectives.