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Taiwan's M2 growth up to 5.05% in Mar

Apr. 26, 2012 (China Knowledge) - Taiwan's central bank has announced that its broad money supply, M2, grew 5.05% year on year in March 2012.

The growth rate was higher than the 4.92% rise recorded in February 2012, according to the central bank's statement.

Taiwan's M1B, a measure of money in circulation, increased 3.47% last month, higher than the 2.84% growth in February 2012.

The loans and investments of major financial institutions, including the postal savings institutions, had grown 5.30% year on year at the end of March 2012, higher than the 5.14% growth as of Feb. 30, 2012.

M2 is closely linked with prices and long-term economic activity and is used by the central bank to implement its monetary policy.

Official statistics showed that the island's consumer price index (CPI) increased 1.21% year on year in March, compared with a 1.33% growth in February, and its wholesale price index (WPI) rose 5.51% last month, higher than the 2.46% increase in February.

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