Taiwan central bank chief says cautiously optimistic over economy

TAIPEI: Taiwan's central bank chief said on Wednesday that he was cautiously optimistic over the outlook for Taiwan's economy amid the current global slowdown, and saw no problem with domestic banks' liquidity.

Central bank Governor Perng Fai-nan made the remarks in response to questions from legislators at a regular parliamentary hearing on whether Taiwan could ride out the current global slowdown.

The central bank kept its policy interest rate on hold at 1.875 percent last week, as expected, taking advantage of easing inflationary pressures to offer the export-led economy some support in the face of the global situation.