Outstanding loans of Philippine commercial banks, net of banks’ reverse repurchase placements with the central bank
, grew at a faster pace of 8.1% in May, following previous month’s expansion of 6.7%, the Bangko Sentral ng Pilipinas reported Wednesday.
The growth of bank lending, inclusive of reverse repurchase placements, also increased 7.7% compared to 6.2% in April, to reach PHP 2.3 trillion. On a monthly basis, commercial banks’ lending in May moved up 1.5% for loans net of RRPs, and by 1.9% for loans inclusive of RRPs.
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The Philippine central bank isn’t in a hurry to raise borrowing costs as inflation at a seven-month low is prompting a review of its forecasts for price gains this year and next, GovernorAmando Tetangco said today.
“There does not seem to be an urgency to move given recent developments,” Tetangco said in a mobile-phone message in reply to questions from Bloomberg today. The central bank will review inflation forecasts “given the new information to see if we need to make any adjustments to policy stance,” he said.
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