Domestic liquidity grows 6.9% year-on-year in June
Preliminary data show that domestic liquidity (M3) grew by 6.9 percent year-on-year to about ?15.4 trillion in June, the same rate of expansion as in May, the Bangko Sentral ng Pilipinas (BSP) said Friday.
On a month-on-month seasonally-adjusted basis, M3 increased by 0.7 percent.
Domestic claims rose by 9.6 percent year-on-year in June from 8.9 percent in the previous month due to the improvement in bank lending to the private sector.
Claims on the private sector grew by 8.7 percent in June from 7.5 percent in May with increased bank lending to non-financial private corporations and households.
Meanwhile, net claims on the central government rose by 14.8 percent in June from 15.3 percent in May owing to the sustained borrowings by the National Government.
Net foreign assets (NFA) in peso terms increased by 5.7 percent in June from 3.4 percent in May. The NFA of banks expanded at a faster pace on account of higher investments in marketable debt securities.
As the BSP proceeds with the withdrawal of monetary accommodation, it will continue to ensure that domestic liquidity conditions remain ample to support economic activity, consistent with the BSP's price and financial stability objectives. BSP
