INTERVENTIONS: The governor said that efforts were made to slow the NT dollar’s appreciation amid a massive capital influx that reversed five months of outflows

Taipei Times
Date: Jun 19, 2020
By: Crystal Hsu / Staff reporter

The central bank yesterday kept its policy interest rate unchanged at a record low of 1.125 percent, saying that the negative impact of the COVID-19 pandemic has stabilized and consumer activity would get a boost in the second half of the year.

“Board members concluded that it is better to stay put at this time, as relief and stimulus measures have achieved their intended effect of preventing a credit crunch and an economic downturn,” central bank Governor Yang Chin-long (楊金龍) said after its quarterly board meeting, citing an increase in lending and stable interest margins for the past three months.

In March, the bank cut the rediscount rate by 25 basis points to ease the financial burden on corporate borrowers and households as the virus outbreak kept people home and wreaked havoc on retailers, airlines, hotels, restaurants and travel agencies.

Consumer activity might pick up next month with the release of the Triple Stimulus Vouchers on July 15 and other aid programs, Yang said.    [FULL  STORY]