MONEY supply in the financial system expanded at a slower pace in January this year, growing 7.7 percent to P7.480 trillion from P6.943 trillion a year ago, data from the Bangko Sentral ng Pilipinas show.
The January expansion was slower than the 11.3-percent revised growth in December last year, when money supply reached P7.709 trillion from P6.925 trillion a year ago, as previous measures implemented by the Bangko Sentral address excess liquidity in the previous months worked their way into the economy.
“Money supply continued to increase due largely to sustained demand for credit,” the Bangko Sentral said in a statement.
Domestic claims grew 10.8 percent in January from 17.8 percent in December as credits to the private sector expanded at a slower pace.
The bulk of bank loans during the month were channeled to key production sectors such as real estate, renting and business services, wholesale and retail trade, manufacturing, utilities, financial intermediation, and transportation, storage and communication.
Public sector credit, meanwhile, contracted 2.2 percent in January after growing 19.4 percent a month ago as the deposits of the national government increased significantly due mainly to the proceeds from the auction of government debt papers as well as revenue collections of various agencies.