BANK lending continued to grow as the outstanding loans of universal and commercial banks, net of reverse repurchase placements with the Bangko Sentral ng Pilipinas (BSP), expanded by 10.7 percent in May.

The central bank said Thursday the total is higher than the 10.1 percent increase the previous month.

Outstanding loans to residents grew by 10.6 percent for the month, data showed.

Meanwhile, growth in consumer loans to residents accelerate rose 8.5 percent driven by the increase in credit card loans and salary-based general purpose consumption loans, the central bank said.

“With the ongoing normalization of its monetary policy settings, the BSP will continue to ensure that the expansion in credit and liquidity proceeds in line with the outlook for inflation and economic growth while remaining consistent with the BSP’s price and financial stability objectives,” BSP said.

The central bank earlier raised the country’s benchmark interest rate to 2.50 percent to temper soaring inflation. (CSL, PR)