Central bank governor Perng Fai-nan (彭淮南) yesterday refused to comment on whether the fourth quarter of this year would be a good time for economic stimulus measures to end.
Perng visited Council for Economic Planning and Development (CEPD) Chairwoman Christina Liu (劉憶如) yesterday afternoon to discuss how to divert excess liquidity in the local market to improve the job market and when the government should halt its economic stimulus measures.
The governor’s visit came after Liu said in an interview with the Chinese-language Economic Daily News that the fourth quarter would be a good time for the government’s stimulus measures to end, including the central bank’s loose monetary policy.
The central bank has kept its key interest rate at a record low for the fifth consecutive quarter since the global financial crisis broke in 2008 in a bid to help the economy weather the downturn. The central bank’s next policy meeting is scheduled for June 24.
Without elaborating on what was discussed in his closed-door meeting with Liu, Perng told reporters that the government could create more jobs by diverting excess savings and that other measures are under discussion.
Central bank officials said the bank’s priority task is to maintain interest rates at reasonable levels so as not to discourage investment.
Market watchers have said the central bank is likely to continue to issue certificates of deposit to absorb excess market liquidity instead of raising policy rates this month, given high unemployment figures and an unstable international financial situation.
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