Domestic liquidity, or money supply, increased 12.6 percent year-on-year to P8.8 trillion in September, driven mainly by sustained demand for credit, Bangko Sentral ng Pilipinas said over the weekend.
The September growth was faster than the 11.9-percent revised expansion in the previous month. On a month-on-month seasonally-adjusted basis, M3 rose 1 percent.
“Demand for credit remains the main driver of money supply growth. Domestic claims grew by 16.1 percent in September from 15.1 percent in August, due largely to sustained growth in credit to the private sector,” Bangko Sentral said.
“Growth in bank loans remains strong on account of lending to key production sectors such as real estate activities; electricity, gas, steam and air-conditioning supply; wholesale and retail trade, repair of motor vehicles and motorcycles; manufacturing; and information and communication,” it said.
“The continued expansion in M3 affirms the BSP’s assessment that liquidity conditions remain manageable and supportive of non-inflationary growth. Consistent with its mandate, the BSP will continue to closely monitor monetary conditions to ensure that overall monetary settings are in line with its price and financial stability objectives,” Bangko Sentral said.