Preliminary data show that domestic liquidity (M3) grew by 6.4 percent year-on-year to about ?16.3 trillion in December from the 5.5-percent (revised) growth in November. On a month-on-month seasonally-adjusted basis, M3 increased by 0.9 percent.

Domestic claims rose by 12.5 percent year-on-year in December from 11 percent (revised) in the previous month with the broadly steady pace of bank lending to the private sector.

Claims on the private sector grew by 10.5 percent in December from 10.6 percent (revised) in November due to the sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government rose by 21 percent in December from 13.8 percent in November owing to the borrowings by the National Government.

Meanwhile, net foreign assets (NFA) in peso terms declined by 3.5 percent in December from the 1.5-percent (revised) contraction in November. The NFA of banks fell mainly on account of higher bills payable. Similarly, the BSP’s NFA position contracted by 3.4 percent in December.

Looking ahead, the BSP will ensure that domestic liquidity conditions remain appropriate to support the prevailing stance of monetary policy, consistent with the BSP’s price and financial stability objectives. BSP