Today, the headline of one of the local newspapers reads, “Taiwan’s central bank hints rate hikes near the end.” The article goes on to say, “central bank governor Fai-nan Perng stressed that real interest rates were very close to the targeted neutral rates.” The author also pointed out that Mr. Fai-nan Perng apparently discarded the phrase “monetary policy should gradually return to a neutral stance”in the announcement following yesterday’s board meeting.
Central Bank of China
Release Date: March 31, 2006
Today, the headline of one of the local newspapers reads, “Taiwan’s central bank hints rate hikes near the end.” The article goes on to say, “central bank governor Fai-nan Perng stressed that real interest rates were very close to the targeted neutral rates.” The author also pointed out that Mr. Fai-nan Perng apparently discarded the phrase “monetary policy should gradually return to a neutral stance”in the announcement following yesterday’s board meeting.
This report is inaccurate and misleading. The Central Bank of China would like to make the following clarifications.
1. Mr. Perng did not say, “real interest rates were very close to the targeted neutral rates.” Perhaps our friend from the press misheard him.
2. The phrase “monetary policy should gradually return to a neutral stance”did appear in the press statement released by the CBC yesterday.