Central Bank of the Republic of China (Taiwan)
September 21, 2017
Taiwan’s central bank discount rate has been left at 1.375%, its level since a 12.5-basis point cut in June 2016. A statement released after this week’s quarterly policy review observes sub-potential economic growth and low and well-anchored actual and expected inflation. As before, a role for currency market intervention on occasion is defended: “In principle, the NT dollar exchange rate is determined by market forces. If irregular factors (such as massive inflows or outflows of short-term capital) lead to excess volatility and disorderly movements in the NT dollar exchange rate with adverse implications for economic and financial stability, the CBC will, in line with its mandate, step in to maintain an orderly market so as to ensure economic and financial stability.”
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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