TAIPEI, Aug 5 (Reuters) - Taiwan's central bank said on Monday it issued a two-year negotiable certificate of deposit (NCD) for the first time in 10 years in a bid to offer local banks an investment alternative.
The move surprised some traders, who speculated that the central bank could be planning to raise interest rates in the future.
"We are not trying to guide interest rates higher," said a central bank official, adding that traders who saw such a plan "are thinking too much".
The new issue is T$10 billion (US$333 million), only a small percentage of the total of T$6.5 trillion in NCDs the central bank has issued to date, the official said.
Taiwan's central bank periodically issues NCDs to absorb liquidity from the money market.
T$30.03 = US$1 Reporting by Jeanny Kao; Writing by Faith Hung; Editing by Richard Borsuk