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Friday, March 29, 2024

Money supply, bank loans grow

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Money supply rose 13.5 percent in July to P10 trillion from a year ago on the back of strong demand for credit,  the Bangko Sentral ng Pilipinas said Thursday.

“Demand for credit remains the principal driver of money supply growth,” Bangko Sentral said. 

Domestic claims grew 15.7 percent in July, faster than the 15.4-percent increase  in June on sustained growth in credit to the private sector. 

“The growth in M3 remains in line with BSP’s prevailing outlook for inflation and economic activity. Going forward, the BSP will continue to closely monitor monetary conditions in order to ensure that domestic liquidity stays adequate to support the BSP’s price and financial stability objectives,” Bangko Sentral said. 

Outstanding loans of commercial banks, net of reverse repurchase placements with the Bangko Sentral, also went up 19.7 percent in July. Inclusive of RRPs, loans expanded 18.7 parent during the month.

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Loans for production activities expanded 18.9 percent while loans for household consumption increased 22.3 percent in July. 

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