Money supply growth picks up in February as financial conditions ease

Money supply grew at a faster year-on-year pace of 9.9 percent in February due to rising foreign-and peso-denominated assets of the central bank and Philippine-based banks. The growth in domestic liquidity — the broadest measure of money available in the financial system — was faster than 8.1 percent in January, indicating stabilizing financial market conditions, the central bank said on Thursday. "This indicates that there are ample funds available to support the growth requirements of the Philippine economy," the Bangko Sentral ng Pilipinas (BSP) said in a statement. "Going forward, the BSP will continue to ensure that the level of liquidity circulating in the economy is consistent with the objective of safeguarding price stability, which is a necessary condition for balanced and sustainable economic growth," it added. Foreign assets of the central bank and Philippine-based banks grew slower at 14 percent in February from 23.2 percent in the prior month. On the other hand, peso-denominated assets of the BSP and banks here grew by 5.9 percent, a turnaround from a 2.9-percent slide in January, the central bank said. — NPA, GMANews.TV