DOMESTIC liquidity, or money supply in the financial system, grew 8.3 percent in December 2015 year-on-year to P8.3 trillion due largely to sustained demand for credit, Bangko Sentral ng Pilipinas said Friday.
The growth, however, was slower than the 9.4-percent expansion in November. On a month-on-month seasonally-adjusted basis, liquidity decreased by 0.2 percent.
“The continued expansion of domestic liquidity during the month indicates that money supply remains adequate to support economic growth. Going forward, the BSP will continue to monitor monetary conditions to ensure that liquidity dynamics remain in line with maintaining price and financial stability,” Bangko Sentral said.
Domestic claims rose 10.8 percent in December, slower than the 11.8-percent growth a month ago. Credits to the private sector increased at a slower pace relative to the previous month.
The bulk of bank loans was channeled to key production sectors such as real estate; electricity, gas, steam and air-conditioning supply; and wholesale and retail trade. Julito G. Rada