MANILA - Bank lending expanded at a slightly faster rate of 19.5 percent in February from a revised 19 percent in January, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday based on preliminary data.
Loans for production activities grew 18.6 percent in February from 18 percent in the previous month, while the growth of loans for household consumption slowed down to 19.9 percent in from 20.2 percent.
The BSP also said domestic liquidity grew by 13.5 percent year-on-year in February, faster than the 12.8-percent expansion in the previous month.
The liquidity growth was consistent with the central bank's prevailing outlook for inflation and economic activity, it said in a statement.
The Philippine central bank kept its key policy rate steady at 3.0 percent last week, but left the door open for possible policy tightening as it noted that inflation expectations had started to rise. - with a report from Reuters