QUICK LOOK: PH money supply grew 7.7% in Dec 2024 led by private sector loans

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.