Central Bank of the Republic of China Keeps Policy Unchanged after Quarterly Review

March 26, 2015

From a multi-decade low of 1.25%, monetary authorities raised the central bank discount rate at five consecutive meetings — starting in June 2010, ending in June 2011 and moving the rate each time by 12.5 basis points.  Since the June 2011 tightening, policy has been unchanged. That will continue in the second quarter of 2015.  Taiwanese export growth slowed in the first quarter, and mainland China’s economy is still decelerating.  Inflation is meanwhile hovering around a lower-than-desired 1.0%.  Officials at this latest monetary policy review concluded that the moderately accommodative stance doesn’t need to be tightened, and chances are rising that they will not move automatically in lockstep with the Federal Reserve’s initial or even second interest rate hike.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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