Taiwan may follow other Asian central banks and begin withdrawing monetary stimulus this week to cool asset prices, while keeping interest rates unchanged, Goldman Sachs Group Inc and JPMorgan Chase & Co said.
There is a “chance of a hike” in the reserve requirement ratio back to mid-2008 levels, Enoch Fung (馮殷諾), an economist at Goldman Sachs in Hong Kong, said in a report.
Central bank Governor Perng Fai-nan (彭淮南) will leave the discount rate on 10-day loans to banks at 1.25 percent when his board meets at 3pm in Taipei today, all nine economists surveyed by Bloomberg News said.
The central bank cut the required reserve ratio in September 2008 to inject liquidity into the market, a move that has helped shares surge 52 percent in the past year and home loans soar. It’s begun to withdraw some of that cash by selling short-term debt to financial institutions.
Taiwan “has focused on managing the liquidity conditions, especially given growing asset inflation concerns,” by issuing central bank certificates of deposit, said Grace Ng (吳向紅), a Hong Kong-based economists at JPMorgan. “A potential additional policy tool that the central bank might consider in the near term could be raising the reserve requirement ratio.”
The central bank slashed interest rates by 2.375 percentage points from September 2008 to February last year as the economy experienced its worst recession since records began in the 1950s.
Taiwan’s unemployment rate declined for a sixth month last month, the statistics bureau said on Monday. Perng told lawmakers last week that consumer prices were in an “acceptable range.”
Shiina Ito has had fewer Chinese customers at her Tokyo jewelry shop since Beijing issued a travel warning in the wake of a diplomatic spat, but she said she was not concerned. A souring of Tokyo-Beijing relations this month, following remarks by Japanese Prime Minister Sanae Takaichi about Taiwan, has fueled concerns about the impact on the ritzy boutiques, noodle joints and hotels where holidaymakers spend their cash. However, businesses in Tokyo largely shrugged off any anxiety. “Since there are fewer Chinese customers, it’s become a bit easier for Japanese shoppers to visit, so our sales haven’t really dropped,” Ito
The number of Taiwanese working in the US rose to a record high of 137,000 last year, driven largely by Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) rapid overseas expansion, according to government data released yesterday. A total of 666,000 Taiwanese nationals were employed abroad last year, an increase of 45,000 from 2023 and the highest level since the COVID-19 pandemic, data from the Directorate-General of Budget, Accounting and Statistics (DGBAS) showed. Overseas employment had steadily increased between 2009 and 2019, peaking at 739,000, before plunging to 319,000 in 2021 amid US-China trade tensions, global supply chain shifts, reshoring by Taiwanese companies and
Taiwan Semiconductor Manufacturing Co (TSMC) Chairman C.C. Wei (魏哲家) and the company’s former chairman, Mark Liu (劉德音), both received the Robert N. Noyce Award -- the semiconductor industry’s highest honor -- in San Jose, California, on Thursday (local time). Speaking at the award event, Liu, who retired last year, expressed gratitude to his wife, his dissertation advisor at the University of California, Berkeley, his supervisors at AT&T Bell Laboratories -- where he worked on optical fiber communication systems before joining TSMC, TSMC partners, and industry colleagues. Liu said that working alongside TSMC
TECHNOLOGY DAY: The Taiwanese firm is also setting up a joint venture with Alphabet Inc on robots and plans to establish a firm in Japan to produce Model A EVs Manufacturing giant Hon Hai Precision Industry Co (鴻海精密) yesterday announced a collaboration with ChatGPT developer OpenAI to build next-generation artificial intelligence (AI) infrastructure and strengthen its local supply chain in the US to accelerate the deployment of advanced AI systems. Building such an infrastructure in the US is crucial for strengthening local supply chains and supporting the US in maintaining its leading position in the AI domain, Hon Hai said in a statement. Through the collaboration, OpenAI would share its insights into emerging hardware needs in the AI industry with Hon Hai to support the company’s design and development work, as well
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