The nation’s monetary aggregates posted strong growth last month as investors at home and abroad continued to pour funds into the local equities market, the central bank said yesterday.
The M1B money supply measure, which refers to currency held by the public as well as passbook savings, rose 5.44 percent year-on-year last month, the monetary regulator’s report showed.
Yen Tzung-ta (嚴宗大), head of the central bank’s economic research department, said active stock trading and capital inflows underpinned the rise.
“Money wired to securities delivery accounts surged by NT$118.3 billion [US$3.5 billion] to NT$892.7 billion last month,” he told a media briefing. “Meanwhile, the TAIEX rallied 449 points and transactions averaged NT$105 billion a day, from NT$65.5 billion in February.”
Capital inflows amounted to US$1.449 billion, Yen said, adding that demand deposits jumped 7.13 percent for the second consecutive month to NT$7.95 trillion, up NT$330.1 billion from a month earlier.
The M2 monetary gauge, which includes M1B and quasi-money, namely time deposits, time savings deposits and foreign currency deposits, increased 6.39 percent from last year, the report said.
Yen said he expected the broad money supply index to decelerate to the negative zone in the final quarter, due in part to a high base.