Taiwan Tati Cultural and Educational Foundation

The central bank takes action

Taipei Times Editorial

The central bank on Thursday surprised the market by announcing to raise its three benchmark interest rates by 12.5 basis points, effective Friday. Prior to Thursday, the central bank had cut interest rates by a total of 237.5 basis points since September 2008, and most economists had forecast the bank would not raise rates until later this year or early next year.

So, what was the main reason prompting the central bank to make its first rate move since February last year? Based on the bank’s press statement and what central bank governor Perng Fai-nan (彭淮南) said on Thursday, it was aiming to gradually bring market rates up to “normal levels” after it halted quantitative easing measures in March, because it was concerned about negative “real” interest rates — when the nominal interest rates are lower than the inflation rate.

Japan extends ADIZ into Taiwan space

Taipei Times

Japan has extended its Air Defense Identification Zone (ADIZ) so that it now overlaps with sections of a zone controlled by Taiwan, but foreign affairs officials said yesterday that would not make any difference in practice, as an understanding has been reached between the two parties on how to handle the sensitive matter.

A Ministry of Foreign Affairs (MOFA) official said on condition of anonymity that Tokyo informed Taipei “one or two days ago” that its extension of the ADIZ from Yonaguni Island westwards would come into force yesterday.

Taiwan citizens should march for our future

Taiwan News Editorial

All Taiwan citizens who believe that they should have a voice on the future economic and political direction of our society should participate in tomorrow's "Let the People Decide" and "Oppose the One-China Market" rally in Taipei City tomorrow afternoon.

The march, organized by the opposition Democratic Progressive Party, will take place only three days before representatives of the Chinese Communist Party-ruled People's Republic of China and Taiwan's Chinese Nationalist Party (Kuomintang) government will sign a bitterly controversial "Cross-Strait Economic Cooperation Framework Agreement."

Cross-strait unification and the US

Lu I-ming 呂一銘

Having returned recently from her first visit to Taiwan, US Senator Dianne Feinstein, chairwoman of the US Senate Select Committee on Intelligence, commented that the US’ US$6.4 billion sale of military arms to Taiwan was “a mistake,” and reiterated her opposition to the sale. The comments came after a tour of the region that also took her to Beijing and Shanghai, and seem to indicate a shift in US-Taiwan relations. Feinstein is known in the US Senate for her pro-China leanings and is a key figure amongst US politicians who favor maintaining good ties with Beijing. Believing Sino-US relations to be very important to US interests, she has always been somewhat opposed to the idea of selling weapons to Taiwan.

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