MANILA -- Growth in domestic liquidity and banks' outstanding loans both slowed in May compared to the previous month, the Bangko Sentral ng Pilipinas said Friday.
Domestic liquidity or M3 grew 6.3 percent to P11.7 trillion in May, slower than the 7-percent expansion in April. Outstanding loans of universal banks, net of reverse repurchase placements, grew 11.9 percent from 12.7 percent during the same comparable period.
Earlier Friday, official data showed that June inflation slowed to 2.7 percent, giving the BSP room to slash interest rates further as early as August.
The central bank said it would "continue to ensure that the expansion in domestic credit and liquidity remains consistent with promoting non-inflationary and sustainable growth."
It added that it would ensure that domestic liquidity or money supply "remain in line"with price and financial stability
The BSP in May cut interest rate by 25 basis points and announced a 200-basis point reduction in reserve requirement for banks.