Liquidity growth eases further in October
MANILA, Philippines (Xinhua) - Money supply growth in the Philippines eased to 15.4 percent in October on the back of policy adjustments made by regulators, the central bank said today.
The Bangko Sentral ng Pilipinas (Philippine central bank or BSP) said the expansion of domestic liquidity or M3 is slower than the 16.2 percent recorded in September and the 18.3 percent posted in August.
BSP said M3 rose in October amid sustained demand for borrowings in the country. Domestic claims increased by 18.2 percent to P6 trillion ($133.58 billion) during the period on continued expansion of credit to the private sector.
"In particular, the bulk of bank loans during the month was channeled to key production sectors such as manufacturing, real estate, renting, and business services, wholesale and retail trade, utilities, and financial intermediation," the central bank said.
Public sector loans also went up by 19.1 percent to P1.06 trillion ($23.59 billion) last month as deposits of the national government with the BSP fell amid the former's withdrawal of funds for maturing government securities.
M3 growth reached 30 percent in July last year and remained above that threshold after the central bank reduced the Special Deposit Account rate by 150 basis points last year and restricted deposits of investment management accounts or the singular fund accounts offered usually to retail investors in the facility.
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