Central Bank of the Republic of China (Taiwan)
December 26, 2013
After a quarterly review, Taiwanese monetary policymakers released a statement that justified keeping the country’s accommodative monetary policy. The central bank interest rate has been 1.875% since five 12.5-basis point increases between mid-2010 and mid-2011. The statement also reaffirmed a role for currency market intervention to counter disorderly market conditions.
The interest rate level was defended as follows: “Against the backdrop of global uncertainties despite better economic performances, moderate growth in the domestic economy, and muted inflationary pressures, the Board, in keeping with its mandate under the Central Bank Act, judges that the current policy rate level and the 2014 M2 growth target range (2.5% to 6.5%) will help maintain price and financial stability and foster economic growth. Going forward, the CBC will continue to closely monitor the economic and financial developments both at home and abroad and undertake appropriate monetary policy actions in a timely manner.”
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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