Domestic liquidity, or the money supply circulating in the financial system, rose 10.4 percent in August to P11.2 trillion year-on-year, slower than the 11-percent expansion in the previous month, the Bangko Sentral ng Pilipinas said Friday.
Domestic claims grew 15 percent in August, slower than the 16.1-percent rise in the previous month owing to the slower growth in credit to the private sector.
“The overall pace of growth in M3 remains in line with the BSP’s outlook for inflation and economic activity. The BSP will continue to closely monitor domestic liquidity dynamics to ensure that monetary conditions remain conducive to price and financial stability,” the central bank said in a statement.
Data showed that outstanding loans of commercial banks, net of reverse repurchase placements with the Bangko Sentral, increased at a lower rate at 18.9 percent in August from 19.6 percent in July.