Taiwan moves to rein in excess liquidity -c.bank source

TAIPEI Jan 19 (Reuters) - Taiwan does not want too much liquidity in the market and the current overnight rate is relatively low, a central bank source said on Tuesday, pointing to a possible tightening of monetary policy.

The overnight lending rate PIBC hit an eight-month high of 0.12 percent on Tuesday, as the authority moved to rein in on excess liquidity in the market, the source said.

Many economies in Asia, including Taiwan, have become increasingly worried about rising consumer prices and possible asset price bubbles in recent months brought about by the loose monetary policy used to fight the downturn.

(Reporting by Roger Tung; Editing by Jonathan Hopfner)