Domestic liquidity or the money supply circulating in the financial system expanded 8.5 percent to about P12.1 trillion in October year-on- year, faster than the 7.7-percent growth in September, driven primarily by the demand for credit, the Bangko Sentral ng Pilipinas said Friday.
The regulator said on a month-on-month seasonally-adjusted basis, domestic liquidity—also called M3—increased 0.9 percent.
“Demand for credit remained the principal driver of money supply growth. Domestic claims grew by 6.7 percent in October from 7.5 percent in the previous month due mainly to the sustained growth in credit to the private sector,” the BSP said.
Loans for production activities continued to be driven by lending to key sectors such as real estate activities; financial and insurance activities; construction; electricity, gas, steam and air-conditioning supply; and wholesale and retail trade, repair of motor vehicles and motorcycles.
Loans for household consumption increased due to the growth in motor vehicle loans, credit card loans, and salary-based general purpose consumption loans during the month.