Liquidity up by 9.7% to T in Aug.

The central bank reported that in September, domestic liquidity growth slowed down to 9.7 percent to 111.2 trillion compared to the 10.4 percent expansion recorded in August.

The Bangko Sentral ng Pilipinas (BSP) said that “overall liquidity conditions remain supportive of the country's growth requirements” and that it will “continue to closely monitor domestic liquidity dynamics to ensure that monetary conditions remain conducive to price and financial stability.”

On a month-on-month seasonally-adjusted basis, domestic liquidity which is measured as M3 by the BSP, increased by 0.1 percent. By definition, M3 or broad money liabilities is broad money (peso savings and time deposits) plus peso deposit substitutes, such as promissory notes and commercial papers.

The BSP said in September, domestic claims grew by 14.5 percent as private sector credit increased. Domestic claims have a higher growth of 15 percent in August.

The BSP said loans for production activities continue to be propped up by sectors such as wholesale and retail trade, repair of motor vehicles and motorcycles; real estate activities; manufacturing; financial and insurance activities; electricity, gas, steam and airconditioning supply; and construction. The growth in loans for household consumption grew faster with more borrowers buying motor vehicle loans, availing of credit card loans, and salary-based general purpose consumption loans.