Money supply growth slowed further in April —BSP

Money supply growth continued to slow in April as the surge in COVID-19 cases hurt economic activity during the month, the Bangko Sentral ng Pilipinas (BSP) reported.

According to central bank data, domestic liquidity or M3 — the broadest measure of money in the financial system — grew by 5.1% year-on-year to P14.2 trillion.

This is slower than the 8.3% expansion recorded in March, as domestic claims grew at a slower pace of 1.8% in April versus 5.6% in March.

"Bank lending to the private sector remained weak, as measures to contain the resurgence in COVID-19 cases constrained domestic economic activity and dampened market sentiment," the BSP said in an accompanying statement.

Net claims on the central government climbed 23.6% in April versus 47.4% in March on the back of the sustained borrowings by the national government.

Net foreign assets jumped 18.3% in April, broadly unchanged from the 18.1% growth recorded the previous month in line with the increase of gross international reserves.

"Going forward, the BSP will remain vigilant to ensure that the overall stance of monetary policy is in line with the BSP's price and financial stability objectives, while continuing to preserve policy support to the national government's efforts to combat the economic effects of the COVID-19 health crisis," the central bank said.—LDF, GMA News