MANILA, May 26 (Xinhua): The Philippines liquidity growth experienced a slowdown from 36.1 per cent in February to 34.8 per cent in March, a central bank official said here Monday.
The downward trend is expected to continue throughout the year after two reserve requirement ratio cuts earlier, said Deputy Governor of the Bangko Sentral ng Pilipinas (BSP) Diwa Guinigundo in a briefing.
"By the beginning of second semester of 2014, we expect a more normal growth of domestic liquidity," Guinigundo said. The BSP earlier this month sees liquidity growth settling between 15 per cent and 17 per cent by the end of the year.
Monetary authorities have been monitoring liquidity growth as this may have an impact on domestic inflation.
Guinigundo stressed that "actual inflation remains within the target range." The BSP has forecast inflation to average 4.3 per cent this year, above the midpoint of its three to five per cent target range. In the latest Business Expectations Survey of the BSP, local firms said they expect inflation to continue accelerating this year, although remaining within the central bank's target.
This is also consistent with the central bank's survey of private sector economists, the BSP said.
Philippines liquidity growth expects to slow down
FE Team | Published: May 27, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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