The Central Bank of the Philippines published preliminary data showing domestic liquidity (M3) increased 10.3% year on year to PHP 19.8 trillion in February, up from 8.6% in January. On a seasonally adjusted basis, M3 rose 1.2% month on month. Claims on the domestic sector grew 11.0% year on year in February (January: 10.0%), with claims on the private sector up 10.6% for a second consecutive month on continued lending expansion to non-financial private corporations and households. Net claims on the central government rose 12.4% (January: 8.9%), mainly reflecting higher government borrowings, while net foreign assets in peso terms increased 7.4% (January: 10.2%); net foreign assets of the central bank grew 4.1% and banks’ net foreign assets increased primarily due to lower foreign currency-denominated bills payable. The central bank indicated it will continue to manage domestic liquidity conditions in line with its price and financial stability objectives.
Central Bank of the Philippines reports domestic liquidity growth accelerates to 10.3% to PHP 19.8 trillion in February
The Central Bank of the Philippines reported that domestic liquidity (M3) grew 10.3% year on year to PHP 19.8 trillion in February, with seasonally adjusted M3 up 1.2% month on month. Growth was driven by an 11.0% increase in claims on the domestic sector, including higher lending to the private sector and increased net claims on the central government, while net foreign assets rose 7.4%. The central bank said it will continue managing liquidity conditions consistent with its price and financial stability objectives.