Domestic liquidity grows by 8.2 percent, year-on-year, in October 2023

Preliminary data showed that domestic liquidity (M3) grew by  8.2 percent year-on-year to about ₱16.7 trillion in October.

This is the same as the rate of expansion recorded in September. On a month-on-month seasonally-adjusted basis, M3 increased by about 0.7 percent.

Domestic claims expanded by 10.2 percent year-on-year in October from 9.7 percent (revised) in the previous month.

Claims on the private sector grew by 7.6 percent in October from 6.5 percent (revised) in September with the sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government rose by 19.1 percent in October from 19.5 percent (revised) in September due mainly to the decline in deposits by the National Government with the BSP.

Net foreign assets (NFA) in peso terms increased by 2.1 percent year-on-year in October from 1.0 percent in September.

The BSP’s NFA grew by 4.7 percent in October after expanding by 2.3 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 appropriate to support the prevailing stance of monetary policy, consistent with its price and financial stability objectives.