Domestic liquidity grows by 5.7%, year-on-year in March

Preliminary data showed that domestic liquidity (M3) grew by 5.7 percent year-on-year to about ₱17.2 trillion in March from 5.1 percent (revised) in February. On a month-on-month seasonally-adjusted basis, M3 increased by about 0.9 percent.

Domestic claims expanded by 10.8 percent year-on-year in March from 9.6 percent (revised) in the previous month. Claims on the private sector grew by 10.9 percent from 10.3 (revised) in February with the sustained expansion in bank lending to non-financial private corporations and households. Net claims on the central government expanded by 15.0 percent from 12.0 percent (revised) due in part to the decline in the deposits of the National Government with the BSP.

Net foreign assets (NFA) in peso terms rose by 5.0 percent year-on-year in March from 3.6 percent in February. The BSP’s NFA grew by 6.2 percent. Meanwhile, the NFA of banks contracted on account of higher bills payable.

The BSP will continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in keeping with its price and financial stability objectives.