Domestic liquidity or money supply (M3) in the financial system grew 14.3 percent in May to about P11 trillion, slightly faster than the 14.2-percent expansion in April, the Bangko Sentral ng Pilipinas said Friday.
Data showed M3 increased 1.3 percent on a month-on-month seasonalIy-adjusted basis.
“The overall pace of growth in M3 remains broadly in line with the BSP’s prevailing outlook for inflation and economic activity. Nevertheless, the BSP will continue to closely monitor domestic liquidity to ensure that monetary conditions are conducive to maintaining price and financial stability,” the Bangko Sentral said.
Meanwhile, outstanding loans of commercial banks, net of reverse repurchase placements with the BSP, grew a19.4 percent in May, slightly slower than 19.9 percent in April.
Loans for production activities rose 19.3 percent in May, driven by increased lending to wholesale and retail trade, repair of motor vehicles and motorcycles (23.4 percent); real estate activities (15.7 percent); financial and insurance activities (31.3 percent); manufacturing (17.7 percent); and electricity, gas, steam and air-conditioning supply (11.6 percent).