Domestic liquidity growth, also known as M3, accelerated to 8.3 percent year-on-year in October 2025, reaching about P19.1 trillion, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
This was faster than the 7.6 percent increase recorded in September.
Domestic liquidity is a broad measure of money supply that includes currency in circulation, bank deposits and other financial assets that are easily convertible to cash. On a month-on-month basis, M3 increased by 1.0 percent in October after adjusting for seasonal fluctuations.
The primary driver of the money supply growth involved claims on the domestic sector, which include private and government entities, rising by 10.5 percent year-on-year in October. This was a slight slowdown from the 10.6 percent recorded in September.
Claims on the private sector grew by 11.0 percent in October, up from 10.7 percent the previous month. This was led by the continued expansion in bank lending to non-financial private corporations and households.
Net claims on the central government also increased by 10.0 percent in October, driven mainly by its higher borrowings.
Net foreign assets (NFAs) in peso terms, representing the difference between claims on nonresidents and liabilities to nonresidents of depository corporations, rose 2.1 percent year-on-year in October.
This marked a deceleration from the 3.3 percent growth seen in September. NFAs of the Bangko Sentral ng Pilipinas (BSP) decreased by 0.4 percent, while NFAs of banks alone grew as their foreign currency-denominated bills payable fell.
The BSP said it would continue to ensure that domestic liquidity conditions remain consistent with its price and financial stability objectives.
