Central Bank Interest Rate Cut in Taiwan
March 24, 2016
The Board of the Central Bank of the Republic of China (Taiwan) meets on a quarterly basis and, as done last September and December, cut its three interest rates including the main rediscount rate by 12.5 basis points at this month’s review. Three of the five 12.5-basis points hikes engineered between June 2010 and June 2011 have now been reversed. More easing is possible, and officials will continue to intervene in foreign exchange to limit gains in the NT dollar. A released statement notes externally generated headwinds responsible for on-year negative GDP growth in the second half of last year. Core inflation is less than 1.0%, and the “domestic negative output gap has widened.”
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of the Republic of China, Taiwanese monetary policy
ShareThis
