Preliminary data showed that domestic liquidity (M3) grew by 6.8 percent year-on-year to ?18.1 trillion in January from 7.7 percent in December. On a month-on-month seasonally adjusted basis, M3 declined slightly by 0.5 percent.

Domestic claims expanded by 10.9 percent year-on-year in January from 10.4 percent in December. Claims on the private sector grew by 13.1 percent in January from 12.2 percent in the previous month with the continued expansion in bank lending to non-financial private corporations and households.

Net claims on the central government expanded by 7.4 percent from 7.2 percent due to higher borrowings by the National Government.

Net foreign assets (NFA) in peso terms increased by 2.6 percent year-on-year in January compared to 6 percent in December. The BSP’s NFA expanded by 4.2 percent. Meanwhile, the NFA of banks declined largely on account of higher foreign currency-denominated bills and bonds payable.

The BSP will continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives. Bangko Sentral ng Pilipinas