May. 28, 2012 (China Knowledge) - Taiwan
's central bank has announced that its broad money supply, M2, grew 4.72% year on year in April 2012.
The growth rate was lower than the 5.05% rise recorded in March 2012, according to the central bank's statement. Taiwan
's M1B, a measure of money in circulation, increased 3.77% last month, higher than the 3.47% growth in March 2012.
The loans and investments of major financial institutions, including the postal savings institutions, had grown 5.53% year on year at the end of April 2012, higher than the 5.30% growth as of Mar. 31, 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 1.44% year on year in April, compared with a 1.25% growth in March, but its wholesale price index (WPI) declined 0.55% last month, compared with a decrease of 0.24% in March.