Reported 8 months ago
In order to retrieve excess funds from the market, the Central Bank of Taiwan auctioned off 2-year time deposits yesterday at a bid rate of 1.461%, marking a four-time consecutive increase and a two-year high, with a 0.031 percentage point increase from the previous month. Analysts predict that the continuous record highs in the Taiwanese stock market may stimulate the real estate market and consumption, leading to sustained high inflation rates for the year. As a result, the Central Bank will maintain a relatively tight monetary policy, causing the interest rate for time deposits to rise. Additionally, the Central Bank decided to keep interest rates unchanged and enhance credit control measures for the property market during a board meeting last Thursday, increasing the reserve requirement ratio by one basis point (0.25 percentage points) starting from July 1st. The increase in the reserve requirement is expected to withdraw 120 billion NT dollars from the market, which analysts believe can be absorbed without significant impact.
Source: YAHOO