Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) show that domestic liquidity (M3) in the Philippines grew by 5.8 percent year-on-year in April 2025, reaching approximately ₱18.2 trillion. This marks a slight deceleration from the revised 6.2 percent growth posted in March. On a month-on-month seasonally adjusted basis, M3 registered a modest uptick of 0.1 percent.
The BSP reported continued expansion in domestic claims, which rose by 10.9 percent year-on-year in April, up from a revised 10.5 percent in the previous month. This growth was driven primarily by:
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Private Sector Credit: Claims on the private sector increased by 11.4 percent in April, a slight dip from the revised 11.6 percent in March. The growth indicates sustained lending activity to non-financial private corporations and households.
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Government Borrowing: Net claims on the central government rose by 9.4 percent, up from a revised 8.1 percent in March. The increase is attributed to higher borrowing by the National Government.
Meanwhile, net foreign assets (NFA) in peso terms registered a marginal decline of 0.2 percent year-on-year in April, reversing the revised 2.6 percent growth observed in March. The BSP’s own NFA posted a slight increase of 0.1 percent, while the NFA of banks declined, primarily due to an uptick in foreign currency-denominated bills payable.
The BSP emphasized its continued vigilance in monitoring domestic liquidity conditions and affirmed its commitment to maintaining consistency with its current monetary policy stance. These efforts are aligned with the BSP’s overarching goals of preserving price and financial stability.
