Domestic Liquidity Grows by 6.6 Percent Year-on-Year in June

Preliminary data showed that domestic liquidity (M3) grew by 6.6 percent year-on-year to about ₱17.5 trillion in June from 6.5 percent in May. On a month-on-month seasonally-adjusted basis, M3 increased by about 0.5 percent.

Domestic claims expanded by 10.5 percent year-on-year in June from 10.7 percent in the previous month. Claims on the private sector grew by 11.7 percent in June from 11.6 percent in May with the continued expansion in bank lending to non-financial private corporations and households. Net claims on the central government expanded by 12.1 percent from 12.2 percent due to the sustained borrowings of the National Government and the decline in its deposits with the BSP.

Net foreign assets (NFA) in peso terms rose by 8.3 percent year-on-year in June from 4.9 percent in May. The BSP’s NFA grew by 12.3 percent. Meanwhile, the NFA of banks contracted on account of higher bills and bonds payable.

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