The nation’s money supply has maintained a “golden cross” for the 15th consecutive month, despite the slow annual growth of the M1B and M2 money supplies last month, indicating sufficient liquidity.
A “golden cross” emerges when the annual growth of M1B surpasses that of M2.
The M1B, a narrow measure of money in circulation, including currency and passbook savings deposits, rose 8.5 percent from the previous year, down from an 8.85 percent year-on-year increase in November last year, the central bank said yesterday.
The broader M2 measurement — which includes M1B, time deposits, foreign currency deposits and mutual funds — increased 5.75 percent last month compared with the same period the previous year, lower than the 6.05 percent increase posted a month earlier.
“Slower growth in bank loans and investments slowed the levels of M1B and M2 last month,” Chen E-dawn (陳一端), deputy head of the bank’s economic research department, told a press briefing.
Chen attributed the slower growth in bank loans to sharp decline in demand from the government, as the funds paid for the fourth-generation telecom licenses have gradually entered the government’s account.
However, Chen said liquidity remains abundant, as the daily average amount of M1B reached its highest level in history at NT$13.2 trillion (US$433.93 billion) last month.