Academia Sinica yesterday called on the central bank to adjust its longstanding policy of keeping interest rates low and local currency exchange rates weak, which has contributed to national economic stagnation and excessive liquidity.
The Taipei-based research body made the appeal at a news conference after releasing recommendations on how the monetary policymaker can enhance stabilization of Taiwan’s currency market and banking institutions.
“Taiwan’s economic and financial development shows stagnation and suggests significant need for reform,” the report said.
The central bank in the past year has met its goal of stabilizing the local currency and financial system, but has ignored enhancing liquidity