M3 climbs 9.8% in November; bank lending up 14%
MANILA - M3 or domestic liquidity rise to 9.8% in November from 8.6% in October, the Bangko Sentral ng Pilipinas said on Thursday.
Loan growth net of central bank placements, meanwhile, slowed to 14% in November from the 15.8% seen in October.
The Philippine central bank said in a statement it will monitor liquidity conditions to ensure credit activity remains supportive of overall economic growth.
Production loans, comprising more than four-fifths of
commercial banks' loan portfolios, climbed 14.6 percent in November from a year earlier, lower than the previous month's 16.4 percent annual rise.
Growth in consumer loans was 12.1 percent in November from a year ago against 13.9 percent in October, reflecting the slowdown across all types of household loans.
The Philippine central bank's policy stance of low interest rates remains appropriate, Governor Amando Tetangco said on Tuesday ahead of a policy review on Jan. 24. Its key overnight borrowing rate is at a record low of 3.5 percent after a total 100-basis-point cut in 2012.
Money supply is one of the indicators the central bank reviews when setting monetary policy because of its impact on inflation.