Money supply expanded at a faster pace in March as stronger bank lending to businesses and households boosted domestic liquidity, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Domestic liquidity, or M3, grew 12% year-on-year to ₱20.4 trillion in March 2026, accelerating from the 10.3% increase recorded in February.
On a seasonally adjusted month-on-month basis, M3 rose 1.7%.
The BSP attributed the faster liquidity growth mainly to stronger private sector credit. Claims on the private sector, a key gauge of corporate and household borrowing, climbed 11.8% in March from 10.6% the previous month.
Overall domestic claims increased 11.5%, slightly faster than the revised 11.1% growth in February. Government borrowing also contributed to the expansion, with net claims on the central government rising 12.1% as the state increased securities issuance.
Net foreign assets (NFA) in peso terms grew 8.6% year-on-year, faster than the 7.5% expansion recorded in February. The central bank’s own NFA position rose 4.9%, while commercial banks also posted higher NFA holdings, driven largely by lower foreign currency liabilities.
The narrower M1 measure, comprising currency in circulation and demand deposits, rose 9.4% in March, compared with 8.5% in February.
The pickup in liquidity comes as the BSP seeks to support economic activity while managing inflation risks.
“The BSP will continue to ensure that domestic liquidity conditions remain consistent with its price and financial stability objectives,” the central bank said in a statement accompanying the data.
