Domestic liquidity grows by 7.9 percent year-on-year, in September 2023

Preliminary data showed that domestic liquidity (M3) grew by 7.9 percent year-on-year to about ₱16.6 trillion in September  from 6.8 percent in August. On a month-on-month seasonally-adjusted basis, M3 increased by about 1.0 percent.

Domestic claims expanded by 9.5 percent year-on-year in September from 9.3 percent (revised) in the previous month.

Claims on the private sector grew by 6.3 percent in September from 7.5 percent (revised) in August, driven by the sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government rose by 19.2 percent in September from 15.2 percent (revised) in August, owing to the decline in deposits by the National Government with the BSP.

Net foreign assets (NFA) in peso terms increased by 1.0 percent year-on-year in September from 3.5 percent (revised) in August.

The BSP’s NFA grew by 2.3 percent in September after expanding by 3.2 percent in the previous month. Meanwhile, the NFA of banks contracted on account of higher bills payable and foreign deposit liabilities.

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