By Crystal Hsu / Journalist
Although the pace of the country’s money supply growth slowed last month, it has remained rapid, supported by the keen interest of individual investors in local stocks, the central bank said yesterday.
The M1B money supply indicator – cash and cash equivalents – increased 17.73% year-on-year, as the securities account balance reached NT $ 299 trillion (NT $ 107 billion). dollars), the central bank said.
This suggested a record gain of NT $ 1.7 trillion, he said.
Demand and term deposits gained momentum last month from a year earlier, in line with record increases in TAIEX and savings promotions by local lenders, the central bank said.
The local stock exchange gained 965 points, or nearly 6%, to 17,115 last month, with daily turnover reaching a decade high of NT $ 433.9 billion, from an unprecedented number individual investors joined the market, the central bank said.
However, he wouldn’t know if a local COVID-19 outbreak has dampened investor interest until this month’s data is sorted out, the central bank said.
The broader M2 monetary measure – which includes M1B, term deposits, term savings deposits, foreign currency deposits, and mutual funds – grew 8.83% year-on-year after local lenders have offered preferential interest rates to attract large savings deposits, the central bank said.
The growth rate of M1B and M2 slowed after increases of 18.23% and 8.91% respectively in March, reflecting weaker activity in lending and investment, the central bank said.
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