Central bank leaves interest rates unchanged

16 June, 2023

Courtesy of ICRT


Taiwan's central bank has opted to leave its key interest rates unchanged following its quarterly policy-making meeting.


The decision to maintain interest rates was expected after America's central bank chose not to raise its rates on Wednesday.


Analysts say the central bank's decision to follow the US Federal Reserve and pause its rate hikes comes after Taiwan's economy is showing signs of slowing due to weakening global demand.


Market watchers also say it was appropriate to suspend the rate hike cycle, as it will allow the central bank to assess local economic fundamentals and the impact of its rate hikes in the previous five quarters.


The move means the central bank's discount rate remains unchanged at 1.875%, but is still at its highest level in eight years.


The rate on accommodations with collateral stays at 2.25%, while the rate on accommodations without collateral is unchanged at 4.125%.


The central bank has raised its key interest rates by 75 basis points to combat rising inflation since March of last year.

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