Based on our latest baseline forecasts, inflation is seen to settle at 3.4 percent in 2022 and 3.2 percent in 2023, well within the government’s target range of 2 to 4 percent. We expect liquidity in the financial system to remain adequate in supporting credit activity and a broad-based economic recovery.
M3 expanded by 8.2 percent year-on-year to P14.8 trillion in November 2021, unchanged from the growth rate (revised) recorded in October 2021. Overall liquidity conditions thus continue to provide support for domestic economic activity. The various liquidity-easing measures of BSP have injected the equivalent of 12.0 percent of GDP into the financial system.