Philippine money supply slows for eighth month

 

MANILA (Thomson Financial) - Philippine money supply, as measured by M3, grew 9.0 percent in December from a year earlier, after expanding 9.1 percent in the previous month, central bank data showed on Thursday.

Growth in M3 was at single-digit rate for the second straight month and slowed down for the eight consecutive month in December, after it peaked at 26.3 percent in April last year. In May, the central bank introduced measures to mop up excess liquidity in the banking system, including expanding its special deposit accounts window for banks' trust units.

For 2007, M3 growth averaged 17.4 percent, central bank governor Amando Tetangco Jr said in a statement.

Despite double-digit growth in money supply, Philippine inflation averaged 2.8 percent in 2007, below the government's target of 4-5 percent.

enrico.delacruz@thomson.com ed/ms COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.