Money supply growth steps up in Aug

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Rises to 9% from 8.4% in July

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Domestic liquidity in the Philippines as measured by M3 expanded by 9 percent in August, growing faster than the revised 8.4 percent rate recorded in July, with demand for credit surging during the period, the central bank said on Wednesday.

Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) showed M3 up at P7.8 trillion in August.

Month-on-month, and as seasonally adjusted, the increase in M3 was measured at 0.9 percent, according to the data.

“The continued expansion of money supply during the month indicates that domestic liquidity remains adequate to support the requirements of the economy,” the BSP said in a statement.

Domestic claims grew 13 percent in August, compared with the 11.3 percent revised growth posted in July.

The bulk of the bank loans during the month went into key production sectors such as real estate, electricity, gas, steam, and airconditioning supply; electricity, gas, steam, and airconditioning supply; wholesale and retail trade, and repair of motor vehicles and motorcycles; financial and insurance activities; and manufacturing.

Lending to the public sector rose 15.2 percent, faster than the revised 7.4 percent increase in the preceding month.

The BSP added its usual word of assurance to the financial markets in its statement: “Going forward, the BSP will continue to monitor monetary conditions closely to ensure that liquidity in the financial system stays in line with maintaining price and financial stability.”

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