Back to list

Central bank leaves key interest rates unchanged

2012/06/21 17:42:34

Taipei, June 21 (CNA) The Central Bank of the Republic of China (Taiwan)announced Thursday after concluding a quarterly policymaking meeting that it will leave key interest rates unchanged at a time when the local economy is showing signs of slowing down.

The move to keep key interest rates the same -- which the market had widely expected -- was aimed at maintaining ample market liquidity in a bid to boost the economy amid lingering debt problems in the eurozone, market analysts said.

The central bank left the discount rate at 1.875 percent, the rate of accommodations with collateral at 2.25 percent, and the rate of accommodations without collateral at 4.125 percent.

After the central bank stopped its interest rate hike cycle in the third quarter of last year, local key interest rates have not been increased or lowered.

In May, the government cut its 2012 GDP growth forecast to 3.03 percent from an earlier prediction of 3.38 percent, due to pessimism about the country's exports.

(By Kao Chao-fen and Frances Huang)