The Central Bank of the Philippines published preliminary data showing domestic liquidity, or M3, rose by 12.8 percent year on year in May to PHP 20.6 trillion, a faster pace than in April. The increase was driven mainly by continued growth in borrowings by the private and public sectors, while higher net foreign assets also contributed. Narrow money, or M1, also accelerated, rising 9.5 percent year on year in May. Domestic claims grew by 13.3 percent in May, up from 12.7 percent in April. Within that, claims on the private sector increased by 13.2 percent from 12.6 percent, with loans to production sectors and households accounting for 97 percent of those claims. Net claims on the central government rose by 16.2 percent from 15.1 percent as the national government issued debt securities and withdrew deposits from the central bank and banks to finance spending. The central bank's net foreign assets expanded by 8.2 percent, while banks' net foreign assets also increased, largely because of higher holdings of foreign currency-denominated debt securities. The central bank said it will continue to keep domestic liquidity conditions aligned with its price and financial stability objectives.
Central Bank of the Philippines2026-07-07
Central Bank of the Philippines reports May domestic liquidity growth accelerated to 12.8 percent and M3 reached PHP 20.6 trillion
Preliminary data from the Central Bank of the Philippines show M3 rose 12.8 percent year on year in May to PHP 20.6 trillion, faster than in April. Growth was driven mainly by stronger private and public sector borrowing, with higher net foreign assets also adding support. M1 increased 9.5 percent.