The nation’s monetary aggregates continued to expand by a wide margin last month with the M1B reading outgrowing the broader M2 measure for the first time in six years on active stock trading and capital inflows, the central bank said yesterday.DEMAND DEPOSITS
The narrower M1B money supply measure, which includes currency held by the general public and demand deposits, rose 9.5 percent year-on-year to NT$8.973 trillion (US$275 billion) last month, the monetary regulator’s report showed.
The M2 gauge, which includes M1B and time deposits, time savings deposits and foreign currency deposits, advanced 6.78 percent from last year, the report said.
Yen Tzung-ta (嚴宗大), head of the central bank’s economic research department, said active stock trading and capital inflows accounted for the expansion in both readings.
Stock transactions averaged NT$142.4 billion a day last month, up NT$37.4 billion from a month earlier, Yen said.
INFLOWS
Money wired to securities delivery accounts increased by NT$86.4 billion to NT$979.1 billion, while foreign capital inflows totaled US$2.87 billion at the end of last month, Yen said.
Yen declined to comment on the latest data, which stock analysts said were signs of sustained rallies in the equity markets despite poor economic fundamentals.
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