The country's domestic liquidity grew slower in April by 5.8 percent to P18.2 trillion after increasing by 6.8 percent in March.

The Bangko Sentral ng Pilipinas (BSP) said the negative growth reflected withdrawals from the national government and private banks in fulfilling their debts.

Domestic liquidity refers to savings, time deposits, and deposit substitutes like commercial papers and promissory notes.

The BSP reported growth of claims on the national government reached 9.4 percent, faster than the 8.1 percent recorded in March.

Meanwhile, the country's net foreign assets (NFA) in peso terms grew slower by 0.2 percent from 2.6 percent.

"The BSP’s NFA increased by 0.1 percent. Meanwhile, the NFA of banks declined largely on account of higher foreign currency-denominated bills payable," the Central Bank said.

Non-financial private corporations and households also continued to borrow funds, moderating overall growth of claims on the private sector at 11.4 percent from 11.6 percent.

The figures were recorded by the BSP amid a still restrictive policy rate for lenders at 5.5 percent.

BSP Governor Eli Remolona Jr. said the Central Bank's Monetary Board is considering reducing the policy rate two times more in the second half of the year to drive faster economic growth. He said the rate might fall to 5 percent by the end of the year.