MANILA — Bank lending continues to grow despite several interest rate hikes, central bank data showed.

Outstanding loans of universal and commercial banks, net of reverse repurchase placements with the Bangko Sentral ng Pilipinas grew 9.7 percent in April, the BSP said.

April's lending activity is lower than the 10.2 percent revised March total, the BSP said in a statement.

"The sustained expansion in bank lending activity suggests that domestic liquidity remains sufficient to support economic activity," the BSP said.

"Looking ahead, the BSP will continue to ensure that domestic liquidity and credit dynamics are consistent with the prevailing stance of monetary policy, in keeping with its price and financial stability mandates," it added.

Several banks have earlier said they have recorded higher lending activities for housing and car loans as well as credit card use as the economy continues to recover from the impact of the COVID-19 pandemic.

After keeping its benchmark rate at a record low of 2 percent for over 3 years, the BSP began hiking rates in May last year as inflation quickened as the economy rebounded from the effects of the pandemic.

The BSP paused its series of rate hikes at 6.25 percent earlier this month amid signs that inflation was easing.

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