Central bank leaves interest rate unchanged
Taiwan’s central bank has opted to leave its key interest rates unchanged following its quarterly policymaking meeting. The decision was anticipated by the market watchers and follows a similar move by the US Federal Reserve earlier this week to maintain its monetary policy.
The bank says as domestic economic growth has been lower than expected this year, the move to keep interest rates unchanged is expected to help stabilise the local economy and financial conditions, the central bank said.
It's the second consecutive quarter the central bank has left interest rates unchanged. And it means the discount rate remains at 1.875%, which is still the highest level in eight years.
The rate on accommodations with collateral stays at 2.25%, while the rate on accommodations without collateral is also unchanged at 4.125%. The central bank has raised its rates by 75 basis points to combat rising inflation since March 2022.