Rate hikes...
while the amount disbursed to the electricity, gas, steam and airconditioning supply accelerated to 12 percent to P878.92 billion for an 11.2 percent share.
Furthermore, Fonacier said the increase in loans for household consumption further eased to 15.8 percent in August as releases reached P620.17 billion from a year-ago level of P535.54 billion.
“Similarly, the growth of loans for household consumption decelerated to 15.8 percent in August from 16.9 percent in the previous month due to the slower expansion in credit card loans and motor vehicle loans, as well as the decline in salary-based general purpose consumption loans and other types of household loans during the month,” she said.
Data showed the increase in motor vehicle loans slowed down further to 16.7 percent at P280.67 billion as consumers bought ahead of the impending imposition of higher excise tax under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law last Jan. 1.
Likewise, the growth in credit card loans also eased to 22 percent to P258.54 billion, while salary loans contracted by 1.1 percent to P68.55 billion.
The BSP’s has so far raised interest rate by 150 basis points to 4.5 percent to curb rising inflationary expectations.
The central bank delivered its first back-to-back 50 basis point rate hikes on Thursday since shifting to the inflationtargeting framework 17 years ago. It lifted rates for the first time in more than three years last May 10 followed by another 25 basis points last June 20, 50 basis points last Aug. 9, and 50 basis points last Thursday
Inflation leapt to a fresh nine-year high of 6.4 percent in August from 5.7 percent in July due to higher oil and food prices, weak peso, and the impact of the tax reform program.
Meanwhile, the BSP also reported liquidity in the financial system eased further at 10.4 percent to P11.15 trillion in August from P10.1 trillion in August last year and remains broadly in line with the central bank’s prevailing outlook for inflation and economic activity. –