Taiwan's M1B, M2 growth narrows in Jan. on investment, lending slowdown
The China Post news staffGrowth of Taiwan's M1B and M2 monetary supply gauges narrowed to 3.97 percent and 2.99 percent, respectively, in January on a year-on-year basis, reported the Central Bank of the Republic of China (Taiwan) yesterday.
February 28, 2013, 12:27 am TWN
The growth reduction had to do with a slowdown in bank lending and private investment, the monetary authority said.
Each month, the central bank announces its monetary supply survey, measuring the quantities of M1A, M1B and M2 in the market.
The central bank often uses M2 as a reference when formulating its monetary policy. M1B is money for transaction purposes and is often tied to the performance of stocks, although the central bank says the link between M1B and stocks varies from time to time.