MANILA — Bank lending and domestic liquidity grew at a slower pace in March, the Bangko Sentral ng Pilipinas said on Thursday.

The BSP said that based on preliminary data, lending by universal and commercial banks grew by 11.8 percent year-on-year in March, slower than the 12.2-percent expansion in February. 

Outstanding loans to residents, grew at a slower pace of 12.3 percent in March from 12.6 percent in February. Meanwhile, outstanding loans to non-residents decreased by 5.6 percent in March, following a 3.2-percent decline in the previous month, the BSP said.

Consumer loans to residents grew by 23.6 percent in March from 24.1 percent in February, driven by the increase in credit card loans, motor vehicle loans, and salary-based general purpose consumption loans.

Domestic liquidity (M3) grew by 6.1 percent year-on-year to about P18.2 trillion in March from 6.3 percent in February. On a month-on-month seasonally adjusted basis, M3 increased marginally by 0.7 percent.

The BSP said it will continue to ensure that domestic liquidity conditions remain consistent with monetary policy. The central bank has reduced interest rates by 100 basis points since August last year as inflation began to ease.