01 July 2015

M3 money supply up 9.3% at P7.6T

DOMESTIC liquidity in May as measured by M3—the total amount of cash and cash-equivalents circulating within the economy—rose 9.3 percent year-on-year to P7.6 trillion, indicating that liquidity remains sufficient to sustain the economy’s growth trajectory, the central bank said on Tuesday.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that M3 growth in May was faster than the 9 percent growth posted in April.
Month-on-month and on a seasonally adjusted basis, M3 expanded by 0.7 percent, the central bank said.
The BSP said money supply continued to increase on the back of sustained demand for credit as domestic claims in May grew from a month ago.
Domestic claims grew by 9.6 percent in May from 9.3 percent in April as credits to the private sector continued to increase, although at a slower pace relative to the previous month, the BSP said.
The bulk of the bank loans during the month were channeled into key production sectors such as real estate, renting, and business services, manufacturing, wholesale and retail trade, utilities, and financial intermediation.
By contrast, the BSP data showed lending for the public sector contracted by 3.5 percent after declining by 7.9 percent in April.
“Going forward, the BSP will closely monitor monetary conditions to ensure that liquidity in the financial system remains in line with the BSP’s price and financial stability objectives,” the BSP concluded.
source:  Manila Times

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