The nation's interest rates should remain stable in the next term consumer price hikes are under control, the Taiwan Institute of Economic Research (TIER, 台經院) said in a report released yesterday.
The central bank last week lifted the benchmark interest rate by a larger-than-expected 0.25 percentage points to 3.125 percent, citing possibilities of inflationary risks in the second half of the year.
TIER said the nation's basic rates are still at a low level, which avoids burdening corporate investments.
On the New Taiwan dollar front, TIER expected that the currency would fluctuate within a limited range in the near term as the yuan is likely to gradually go up and international capital might flow into Asia, cashing in on the region's economic growth.
The NT dollar has strengthened against the greenback since last month. It closed at its highest level in more than five months last Friday at NT$32.754 against its US counterpart. Yesterday the local unit edged up NT$0.001 to close at NT$32.764 per US dollar on the Taipei Forex Inc.
TIER also released a survey of manufacturers which expressed a conservative attitude on the next six months, citing concerns over rising material prices.
Of the manufacturers polled last month, 39.8 percent said they were optimistic about the economy for the next two quarters, down from 48.9 percent in the previous survey.
Those who showed bearish views increased from 13.7 percent to 18 percent last month. The remaining 42.3 percent of the respondents expected no change in the business environment, up from the previous month's 37.4 percent.
The results led to a business climate index for manufacturing at 116.71 points, up by 0.4 percentage points from the revised figure in April, TIER said.
Continuing the strong growth momentum since the end of last year, exports rose by 3.5 percent year-on-year to record US$19.58 billion last month, traditionally a slow period.
The trade surplus for the first five months of the year totaled US$9.13 billion, up by 39.8 percent from the same period last year, government statistics showed.
In another survey on the service sector, the think tank said sales in banking, securities, insurance and transport last month all surpassed the levels from a year earlier. Looking ahead, the service industry expected to post revenue growths in the second half, the high-demand season.
The business climate index for the service sector climbed by 3.26 percentage points to 116.36 last month, indicating the respondents bullish outlook on the domestic economy, TIER said.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US