Negative real interest rates could impact policy decisions: Taiwan central bank

TAIPEI (Reuters) – Taiwan’s negative real interest rates could affect decision-making on whether to raise interest rates, its newly-appointed governor Yang Chin-long told parliament on Thursday.

Yang told parliamentarians the central bank’s rate decisions will be made based on factors including the negative interest rates, foreign-exchange rates and the island’s output gap.

The central bank’s next rate-setting meeting is March 22.

Yang also urged small and medium-sized companies to take “appropriate risk aversion measures” due to risks from currency volatility.

The central bank will adopt a “flexible approach to manage floating exchange rate,” he said. “Exchange rate fluctuation could sometimes be very large, and it will be a thankless effort to try to turn the trend around.”

Taiwan was removed from Washington’s list of possible currency manipulators in October because it had continued to reduce the scale of its foreign exchange interventions.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.