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To: DJBEINO who wrote (9254)	3/29/2001 10:10:07 AM
From: DJBEINO	Respond to of 9582

UPDATE1-Taiwan central bank cuts key rates 0.125 point By Michael Kramer TAIPEI, March 29 (Reuters) - Taiwan's central bank cut key interest rates, already at record lows, on Thursday and said it would continue to press reluctant commercial banks to show greater willingness to lend to businesses. The 0.125 percentage point rate cut, decided at its quarterly board meeting, was the second this month and fourth since December as the central bank strives to boost the flagging economy. Bank governor, Perng Fai-nan, said the bank would combine rate cuts with efforts to convince banks to end a credit crunch that began after several high-profile corporate defaults last year and open their coffers. "When the economy is in a downturn, banks naturally tighten lending," he told reporters. "Therefore, the central bank continues to use moral persuasion on banks. We hope banks continue to provide full funding to enterprises with normal operations." The central bank reduced the discount rate to 4.125 percent and the accommodation with collateral rate, which banks pay when using government bonds as collateral for central bank loans, to 4.5 percent. Both cuts are effective March 30. Thursday's move brought the cut in the two key rates to 0.625 points since late last year, when the central bank began to loosen monetary policy to counter a downturn in Taiwan's export-led economy. The bank said in a statement the cut was based on a rising unemployment rate, declines in demand and production, and mild gains in consumer prices. A Reuters poll of 10 economists and bankers this week showed eight expected a 0.125 percentage point cut, while the rest put it at between 0.125 and 0.250 percentage point. EFFECT DAMPENED "A 0.125 percentage point rate cut is basically within our expectations, but we may not see any effect on the economy," said Norman Yin, professor of finance at National Chengchi University. "It won't do much help to the corporates. Those who cannot borrow money can still find no place to get money," he said, referring to the credit crunch. Central bank officials shied away from using heavier measures to encourage lending, such as cutting reserve ratios or quickly slashing rates dramatically in the fashion of the U.S. Federal Reserve. "This is strong medicine," Perng said of reducing the reserve ratio. "We only use this when banks have no money in their pockets, but now banks have abundant funds." "The United States cut 1.5 percentage points in such a short period of time," added vice governor Hsu I-hsiung. "We think this is too fast and too fierce. This is in conflict with our fine-tuning policy." However, analysts forecast further monetary easing. "If the United States continues to lower interest rates, we expect Taiwan's central bank will still continue its fine-tuning, with room for about another 0.25 percentage point," said one analyst at a local brokerage, who declined to be identified. On Thursday, the central bank's board also maintained the island's M2 money supply target zone of five to 10 percent growth, and reaffirmed its pledge to intervene in the foreign exchange market when it was affected by "seasonal or occasional factors" and "abnormal market expectations".

To: DJBEINO who wrote (9254)	3/30/2001 12:51:12 AM
From: DJBEINO	Respond to of 9582

UMC (2303) closed @ 53.00 unc vol 33,343,034 +++++++++ TAIWAN WEIGHTED closed @ 5797.92 -35.96 (-0.62%) Day's Range :5772.39 - 5865.48 ++++++++

To: DJBEINO who wrote (9254)	4/2/2001 1:51:20 AM
From: DJBEINO	Read Replies (2) \| Respond to of 9582

UMC (2303) closed @ 51.00 -2.00 vol 32,100,344 +++++++++ march 30 net purchase 6,586,000 shares ++++++++++= TAIWAN WEIGHTED closed @ 5607.73 -190.19 (-3.28%) Day's Range :5596.18 - 5797.85 ++++++++ Chartered Semiconductor shed 3.2 percent to S$4.22 as the third-largest maker of computer chips to customers' designs may sack workers as demand for its products falls, the Business Times reported, citing unidentified sources. Separately, Standard & Poor's Corp. rated the bonds Chartered sold last week a ``BBB-'' with a negative outlook, the lowest investment grade rating, traders said.