Central bank dismisses money supply ‘death cross’By Crystal Hsu / Staff reporterThe nation’s M2 broad monetary gauge last month grew faster than the narrow M1B indicator, resulting in the first so-called “death cross” in four years, the central bank said yesterday. Photo: Chen Mei-ying, Taipei TimesM1B refers to cash and cash equivalents, while M2 encompasses M1B, time deposits, time savings deposits, foreign currency deposits and mutual funds. “There is no need to overreact, as there is still ample liquidity in the market to support economic activity, despite a slowdown in both measures,” the central bank said. Data on time deposits and foreign currency deposits have little to do with the TAIEX’s performance, it said, adding that foreign currency deposits rose 15.23 percent from a year earlier, although they eased from a 17.64 percent pickup in June. The National Stabilization Fund later stepped in and helped restore confidence, the central bank said.
