M1B and M2 surge in January on growth in capital demand
By John Liu ,The China PostTAIPEI, Taiwan -- Due to a surge in capital demand during the Chinese New Year, monetary aggregates of M1B and M2 in January grew 9.39 percent and 5.97 percent, respectively, compared with a year ago, the Central Bank of the Republic of China (CBC) said yesterday.
February 26, 2014, 12:45 am TWN
M1B's growth in January was the highest since November, 2010. The banking sector made significantly more loans and investments in January, the central bank said. Also, companies took out more capital last month in order to pay for year-end bonuses to their employees.
The huge annual growth was partially contributed to by a relatively low base period a year ago. The stock market averaged below 8,000 points during the first half of 2013. However, the stock market already exceeded 8,500 points as it stands now.
The M1B, which encompasses all physical capital and demand deposits, grew 2.75 percent month-on-month, while the M2, which encompasses all of M1B plus savings deposits and physical capital market shares, grew 0.97 percent.
After taking seasonal factors into consideration, M1B grew 8.83 percent year-on-year, while M2 grew 5.77 percent, said Chen Yi-tuan (陳一端), deputy director of the CBC's Department of Economic Research.