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Recession likely to bottom out in mid 2009: central bank

Recession likely to bottom out in mid 2009: central bank

Taipei, Dec. 29 (CNA) The economic recession currently looming over the country is likely to bottom out in mid 2009, Central Bank of the Republic of China Governor Perng Fai-nan predicted Monday.
Perng told the Legislative Yuan's Finance Committee that Taiwan's economy is unlikely to be unaffected by the global economic downturn and that Taiwan must try to stimulate domestic demand in order to minimize the negative external impact on the country.
According to Perng, cutting key interest rates is one of many methods to expand domestic demand, and it is more important to introduce an expansionary fiscal policy.
Asked if Taiwan will move toward a zero rate policy, Perng said no, noting that no country in the world has so far cut interest rates to zero.
He pointed out that Taiwan's key interest rates are higher than Japan's, though lower than those of many other countries, including the United States.
On capital flows, Perng said remittances by Taiwanese amounted to a net inflow of US$5.6 billion in September, US$10.5 billion in October and US$2.1 billion in November, while those by foreigners amounted to a net outflow of US$4.2 billion in September, US$6.8 billion in October and US$1.2 billion in November.
He said the central bank will pay attention to the purpose of remittances to monitor a possible inflow of hot money, adding that the bank will allow the market mechanism to decide the value of the New Taiwan dollar.
(By Y.F. Low)




Updated : 2020-12-04 08:15 GMT+08:00