Taiwan's Money-Market Rate Slump May Delay Central Bank Easing
A surge in the Taiwanese dollar last month spurred an influx of funds, driving local money-market rates to the lowest level in more than a year and potentially delaying monetary easing by the central bank.
Taiwan's dollar has surged 11% since the end of March, which the central bank said was fueled by ' excessive ' inflows from exporters and foreign investors. Meanwhile, overseas buyers poured almost NT$220 billion ($7.4 billion) into local equities in May as the benchmark index gained. That's bolstered liquidity in the interbank market — and the highest interest rate that financial institutions pay to borrow for one week has slid to a 14-month low.
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