Taiwan's central bank held its benchmark interest rates steady in a bid to support Taiwan's budding recovery on Thursday (25 September), and it pledged to defend the stability of the local currency.
The Central Bank of China (CBC) left the primary rediscount rate at its record low of 1.375 per cent as concerns over a weak job market and a further decline in consumer prices linger despite the recent spate of positive economic news, a central banker announced after the CBC's quarterly policy meeting.
"The central bank is likely to maintain its loose monetary policy for a quite a while into the future because of the absence of upward pressure on consumer prices," CBC Governor Perng Fai-nan said.
While the CBC's stance on interest rates was expected, its comments on the New Taiwan (NT) dollar were highly anticipated because the local currency, like most Asian currencies, is under growing pressure to appreciate against the US dollar.
