The Central Bank of the Philippines released preliminary domestic liquidity data showing broad money (M3) grew 6.6% year-on-year to about PHP 18.6 trillion in August, up from 6.2% in July. On a seasonally adjusted basis, M3 increased 0.5% month-on-month. Claims on the domestic sector rose 9.8% year-on-year in August, easing from 10.5% in July. Within this, claims on the private sector grew 11.1% (from 11.0%), attributed to continued expansion in bank lending to non-financial private corporations and households, while net claims on the central government increased 6.1% (from 7.1%) on higher government borrowings. Net foreign assets in peso terms rose 4.8% year-on-year after a 0.6% decline in July, with the central bank’s net foreign assets up 0.7% and banks’ net foreign assets also increasing amid a decline in foreign currency-denominated bills payable. The central bank stated it will continue to ensure domestic liquidity conditions remain consistent with its price and financial stability objectives.
Central Bank of the Philippines reports August M3 growth accelerates to 6.6% to PHP 18.6 trillion
The Central Bank of the Philippines reported a 6.6% year-on-year growth in broad money (M3) to PHP 18.6 trillion in August, with a 0.5% month-on-month increase. Claims on the domestic sector rose 9.8% year-on-year, driven by private sector lending and increased government borrowings. The central bank affirmed its commitment to maintaining liquidity conditions aligned with price and financial stability goals.