PR
Preliminary data show that domestic liquidity (M3) grew by 6.4 percent year-on-year to about ₱11.8 trillion in June 2019, unchanged from the rate of expansion in May 2019. On a month-on-month seasonally-adjusted basis, M3 increased by 0.1 percent.
Demand for credit eased slightly but remained the principal driver of money supply growth. Domestic claims grew by 6.2 percent in June from 6.8 percent in the previous month. This is due mainly to the sustained growth in credit to the private sector. Loans for production activities continued to be driven by lending to key sectors such as real estate activities; financial and insurance activities; electricity, gas, steam and airconditioning supply; construction; wholesale and retail trade, repair of motor vehicles and motorcycles; and manufacturing.
Loans for household consumption increased due to the growth in credit card loans and other types of household loans during the month. Meanwhile, net claims on the central government contracted by 3.9 percent in June following a 6.4-percent decline in May, due in part to the increase in deposits by the National Government with the BSP.
Net foreign assets (NFA) in peso terms grew by 5.3 percent in June from 4.4 percent in May. The BSP’s NFA position expanded during the month, supported by foreign exchange inflows coming mainly from overseas Filipinos’ remittances and business process outsourcing receipts. By contrast, the NFA of banks decreased as their foreign liabilities rose due to increased placements and deposits made by foreign banks with their local branches and other banks.
The BSP will continue to closely monitor domestic liquidity dynamics to ensure that overall monetary conditions remain in line with the BSP’s price and financial stability objectives.
