Domestic Liquidity Rises 5.4% in September

Domestic liquidity (M3) rose 5.4% year-on-year to approximately ₱17.6 trillion in September, compared with a 5.5% increase in August, according to preliminary data. Month-on-month, seasonally-adjusted M3 growth was a slight 0.7%.

Domestic claims expanded 9.6% year-on-year in September, down from 10.0% in August. Claims on the private sector increased by 12.4% in September from 11.9% in August, driven by steady growth in bank lending to non-financial private corporations and households.

Net claims on the central government rose by 6.6%, slowing from 8.5% in the previous month, as the National Government’s deposits with the Bangko Sentral ng Pilipinas (BSP) curbed the increase in borrowings.

Net foreign assets (NFA) in peso terms climbed 8.6% year-on-year in September, up from 2.4% in August. The BSP’s NFA grew by 14.2%, reflecting a rise in gross international reserves. In contrast, the NFA of banks contracted, largely due to an increase in bills payable.

The BSP stated it would continue to maintain domestic liquidity conditions aligned with the current monetary policy stance, supporting its objectives for price and financial stability.