No Monetary Policy Change By Taiwan
June 25, 2009
As analysts anticipated, officials at Taiwan’s central bank left key interest rates unchanged, including the 1.25% discount rate. That rate was last reduced in mid-February. A statement released on the central bank’s website found the recession to be “abating” after a GDP plunge of 10.2% between 1Q08 and 1Q09. Inflation has dipped marginally under zero, but core CPI was 0.8% in January-May. The policy stance is already “easy,” and money and credit growth indicate ample liquidity. Officials reserve the right to smooth out movement in the new Taiwan dollar with intervention.
Copyright Larry Greenberg 2009.
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