Reported 10 months ago
Taiwan's central bank is experiencing a significant drop in purchases of central bank deposits due to a combination of monetary policy tightening, seasonal tax impacts, and an investment boom diverting cash into stocks. This decline in demand for certificates of deposits is causing market liquidity to shrink, with banks reducing purchases by a record amount in June. As the central bank's tightening stance remains, coupled with increasing money market rates, analysts anticipate further challenges in liquidity management amidst potential future rate hikes.
Source: YAHOO