MANILA – The country’s money supply growth slowed in January given the drop in loans for household consumption during the period, the Bangko Sentral ng Pilipinas (BSP) revealed Thursday.
According to central bank data, the domestic liquidity or the M3 – the broadest measure of money in the financial system – grew by 7.6 percent to P11.4 trillion in January.
This is slower than the 9.2-percent growth recorded in December 2018, and flat from the 7.6 percent in January 2018.
“Demand for credit eased but remained the principal driver of money supply growth,” the BSP said in an accompanying statement.
Domestic claims for the month grew 12.2 percent, mainly driven by the sustain growth in credit to the private sector, mainly to sectors such as wholesale and retail trade; real estate activities; electricity, gas, steam and air conditioning supply; and construction, among others.
Meanwhile, the growth of loans for household consumption slowed down in January due to the deceleration in credit card loans and motor vehicle loans, along with the contraction in salary-based general purpose consumption loans.
Growth in net claims on the central government likewise slowed to 4.7 percent in January from 16.4 percent in the previous month.
“The BSP will continue to closely monitor domestic liquidity dynamics to ensure that overall monetary conditions remain in line with maintaining price and financial stability,” the BSP said. (GMA News)
