Lin Bo-Feng: Taiwan's Foreign Exchange Reserves Are Sufficient, Central Bank Should Maintain Current Interest Rates

(Central News Agency reporter Wu Chia-Hao, Taipei, June 17) Amid global inflationary pressures, central banks in Europe and Japan have announced a 25-basis-point interest rate hike. Lin Bo-Feng, chairman of the 33 Society, said today that any interest rate decision should balance coordination with major central banks while weighing national interests and corporate affordability. Given Taiwan's sufficient foreign exchange reserves, a hasty rate hike could加重企業負擔 and should be avoided; the current rate should be maintained.

Speaking at the 33 Society's June monthly meeting, Lin noted that the artificial intelligence (AI) sector has driven strong export performance, with expectations of high growth over the next two to three years. However, these gains have not extended to all industries, and traditional sectors continue to struggle.

He urged the government to implement effective measures to help traditional industries survive and operate smoothly over the coming years. Without support, a wave of bankruptcies could become a major warning sign for Taiwan's economy.

Lin emphasized that current government assistance programs primarily benefit specific industries. To enhance policy effectiveness, the government should consult with major business associations such as the Industrial Association, Commercial Association, Federation of Business Associations, and the 33 Society to deeply understand each sector's actual needs and ensure precise policy alignment.

When asked about the recent record highs in Taiwan's stock market, Lin said the overheating of market capital is a short-term phenomenon, not a long-term trend. Global stock volatility is also linked to international situations such as wars. If geopolitical tensions persist, optimism should be tempered, and a prudent approach to stock market developments is warranted. (Edited by Lin Shu-Yuan) 1150617