Interest rates to remain unchanged for now

26 August, 2021

Courtesy of ICRT

Central bank Governor Yang Jin-long says interest rates are likely to remain unchanged for the time being, as the local economy is not overheating.

Speaking during a meeting with members of the legislative Finance Committee, Yang said consumer prices are forecast to grow by between 1.6% and 1.7% this year, meaning there is no immediate need for the central bank to tighten its financial policy.

The statement comes as the US Federal Reserve remains divided about the threat of inflationary pressure on America's economy and there have been reports it could seek to taper bond purchases.

That has led to concerns that any moves by the US Fed to scale down its asset purchase programme could negatively affect Taiwan.

The central bank is scheduled to hold its quarterly policy-making meeting next month.

Interest rates have remained unchanged for six consecutive quarters.

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