The Central Bank of the Philippines released preliminary monetary statistics showing domestic liquidity (M3) rose 8.6% year on year to PHP 19.7 trillion in January, accelerating from a revised 7.2% increase in December. On a seasonally adjusted basis, M3 increased 0.8% month on month. Claims on the domestic sector grew 10.0% year on year in January (from 10.5%), with claims on the private sector up 10.6% on continued expansion of bank lending to non-financial private corporations and households. Net claims on the central government increased 8.9% (from 10.8%), driven mainly by higher government borrowings, while net foreign assets in peso terms rose 10.2% (from 5.9%); net foreign assets of the central bank increased 9.2% and banks’ net foreign assets improved mainly due to lower foreign currency-denominated bills payable. The central bank said it will continue to ensure domestic liquidity conditions remain consistent with its price and financial stability objectives.
Central Bank of the Philippines reports January M3 up 8.6% year on year to PHP 19.7 trillion
The Central Bank of the Philippines reported an 8.6% year-on-year increase in domestic liquidity (M3) to PHP 19.7 trillion in January, up from a 7.2% rise in December. Claims on the domestic sector grew 10.0%, with private sector claims up 10.6% due to expanded bank lending. The central bank emphasized its commitment to maintaining liquidity conditions aligned with price and financial stability goals.