Economics
Strong Dollar, Excess Cash Put Taiwan in a Bind: Decision Guide
- Liquidity, global easing leave little room to raise rates
- Policy makers to keep borrowing costs on hold, survey shows
This article is for subscribers only.
Taiwan’s central bank is in something of a bind.
It can’t raise interest rates without further driving up the value of its dollar, and while cutting rates should help stem the currency’s gains, it could also exacerbate a surfeit of cash, which is already driving down yields and pushing up housing prices.