The Philippine central bank on Wednesday released data on lending by commercial banks in May:
KEY DATA May April March February January Dec ( percent change y/y) Total loans net of reverse repurchase (RRP) deals 14.7 19.2 18.7 18.0 19.1 19.3 Total loans with RRP 13.6 16.0 17.7 16.1 16.6 16.4 Seasonally adjusted data ( percent change mth on mth) Total loans net of RRP -0.3 1.9 2.1 0.9 1.3 -0.5 Total loans with RRP 0.2 0.9 2.7 0.9 1.2 0.4
* Production loans, comprising more than four-fifths of commercial banks’ loan portfolios, grew 14.7 percent in May from a year earlier, slower from a 19.7 percent rise in April.
* Growth in consumer loans eased to 16.8 percent from 17.5 percent in April due mainly to the slowdown in auto loans.
* The central bank said in a statement the sustained growth in bank lending supports the favourable outlook for domestic demand amid tepid global economic conditions.
* President Benigno Aquino told Reuters in an interview last week second quarter growth may have surpassed the first quarter’s annual pace.
* The central bank said last week there was room to ease monetary policy after inflation sustained its deceleration in June on softer oil prices. It will review policy on July 26.
* Most analysts in a Reuters poll in June expected the benchmark rate to be kept at 4.0 percent for the whole year, but some said there was scope for more rate cuts if inflation remained benign and global conditions deteriorated further.
* Manila targets economic growth this year of 5 to 6 percent. In 2011, growth was 3.7 percent, below the government’s forecast.