QUICK LOOK: PH money supply grew 7.7% in Dec 2024 led by private sector loans
February 12, 2025
12:30PM PHT
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Key points:
Steady M3 growth – Domestic liquidity (or M3 in economics jargon) — the amount of cash and "near-cash" assets circulating in the financial system — expanded 7.7 percent year-on-year in December 2024, reaching P18.8 trillion, maintaining the same growth rate as November, according to the Bangko Sentral ng Pilipinas (BSP).
Biggest source of growth – Private sector lending was the biggest driver, rising 12.2 percent due to increased bank lending to corporations and households.
Government borrowing slows – Net claims on the central government rose 7.2 percent, a slowdown from 9.2 percent in November, as government borrowings moderated.
Net foreign assets decline – The BSP’s net foreign assets (NFA) grew 6.8 percent, but overall NFA expansion slowed to 6.0 percent from 9.8 percent in November, due to banks’ higher bills and bonds payable.
BSP’s policy focus – The central bank said it will maintain liquidity policies aligned with price and financial stability objectives.
