Taiwanese Central Bank Interest Rates Left Unchanged
December 18, 2014
The discount rate at the Central Bank of The Republic of China has been at 1.875% since five successive 12.5-basis point hikes between June 2010 and June 2011 raised such from a prior 56-year low of 1.25%. The fourteen ensuing quarterly policy reviews have left the rate unchanged, including today’s. A released statement after this most recent review also set a 2.5-6.5% target in 2015 for M2 money expansion (same as in 2014), projected GDP growth and CPI inflation next year of 3.5% and 0.91%, respectively, and overall “judged that the current policy rate level and the 2015 M2 growth target range (2.5% to 6.5%) will help maintain price and financial stability and foster economic growth.” Finally, officials as before reserved the right to conduct foreign exchange market intervention at times when disorderly NT dollar movements create “adverse implications for economic and financial stability.” Otherwise, the government is committed to a market-determined currency.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Taiwan monetary policy
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