The annual growth of M1B and M2 money supply fell last month amid a continuous net outflow of foreign capital, the central bank said yesterday.
M1B, a narrow measure of the money supply in circulation, rose 6.28 percent from a year ago, down from a 7.44 percent increase in August, its lowest level since March 2009, the bank said.
The broader M2 monetary measurement — which includes M1B, time deposits, savings deposits, foreign currency deposits and mutual funds — increased 5.85 percent year-on-year last month, down from a 6.16 percent growth rate in August, data showed.
“The net outflow of foreign capital totaled US$4.104 billion last month, further dragging down the growth rates for both monetary aggregates M1B and M2,” Chen E-dawn (陳一端), deputy head of the bank’s economic research department, told a press conference.
Foreign-held New Taiwan dollar deposits also dropped NT$14 billion (US$464.73 million) to NT$268.4 billion from a month earlier, she said.
Annual growth of M1B and M2 might slow in the fourth quarter because last year’s rising pace built up a higher base, Chen said.
However, she said she was optimistic about the nation’s capital momentum.
In the first eight months, M1B and M2 rose 8.16 percent and 5.99 percent respectively, according to the bank’s data.
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