Fri, Jan 23, 2009 - Page 12 News List

Monetary aggregates increase slightly

By Crystal Hsu  /  STAFF REPORTER

The nation’s monetary aggregates climbed modestly last month on net capital inflows and relatively low figures a year earlier, the central bank said yesterday.

The M2 money supply indicator gained 6.45 percent year-on-year last month, following a rise of 5.05 percent in the previous month, while M1B fell 2.16 percent after a decline of 3.55 percent in November, the statement said.

The central bank attributed the growth in M2 to continuous capital repatriation.

M2 is the broadest money supply measure and includes time deposits, time savings deposits, foreign currency deposits and mutual funds as well as M1Bs.

The narrower M1B monetary index gauges only currency held by the public and demand deposits.

INFLOW, OUTFLOW

The central bank said net foreign capital inflow amounted to US$746 million last month, compared with a net outflow of US$2.49 billion in November.

Savings by foreigners dropped US$21.1 billion at the end of last month from a month earlier.

GROWTH RATE

The accumulative average annual growth rate of M2 reached 2.67 percent, while M1B stood at minus 2.94 percent.

The M2 supply growth rate fell within the central bank’s target zone of between 2 percent and 6 percent for last year.

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