
Taipei, Sept. 21 (CNA) The Central Bank of the Republic of China (Taiwan) on Thursday said it has decided to leave key interest rates unchanged after concluding a quarterly policymaking meeting.
The decision to hold interest rates steady was anticipated by the market, following a similar move by the U.S. Federal Reserve to maintain its monetary policy overnight after a two-day policymaking meeting.
It is the second consecutive quarter the local central bank has left interest rates unchanged with the discount rate remaining at 1.875 percent, which is still the highest level in eight years.
In addition, the rate on accommodations with collateral stays at 2.250 percent, and the rate on accommodations without collateral is also unchanged at 4.125 percent, according to the central bank.
Since March 2022, the Taiwan central bank has raised its rates by 75 basis points to combat rising inflation.
As domestic economic growth has been lower than expected this year, the move to keep interest rates unchanged is expected to help stabilize the local economy and financial conditions, the central bank said.
Economists had said Taiwan faces lower inflationary pressure than the United State, and unless local consumer price index (CPI) growth breaches the 3 percent mark again, the central bank was likely to keep rates unchanged this time as well as at its next policymaking meeting in December.
In August, Taiwan's CPI growth hit 2.52 percent, a seven-month year-over-year high, amid rising fuel and food prices.
CPI growth in Taiwan has remained above the central bank's 2 percent alert level throughout 2023, averaging 2.29 percent in the first eight months of the year and reaching a high of 3.05 percent in January.
Related News
Sept. 21: Central bank cuts Taiwan's GDP growth forecast to 1.46% for 2023
Sept. 21: Cabinet approves draft law to raise tax on hoarding homes
- Taiwan's annual average wage rises to eight-year high: Job bank surveyThe average annual salary for full-time employees in Taiwan reached an eight-year high of NT$694,000 (US$22,242) this year, with wages in the semiconductor sector topping all ...11/29/2023 08:30 PM
- Taiwan to raise tax exemption, deduction thresholds in 2024Taiwan's individual income tax exemptions and standard tax deductions are to be raised in 2024, in time for the tax season in May 2025, the Ministry of Finance (MOF) announced on ...11/23/2023 08:56 PM
- Cabinet approves rent subsidy program for college students living in dormsTaiwan's cabinet approved a five-year program on Thursday to subsidize rent paid by college students living in dorms starting February 2024.11/23/2023 04:20 PM
- Society
Station staff had 15 seconds to stop fatal Taichung MRT crash: Report
11/29/2023 11:12 PM - Society
2023 HIV cases likely to dip below 1,000, first time in 20 years: CDC
11/29/2023 10:26 PM - Science & Tech
French office to hold talk in Hsinchu to celebrate female scientists
11/29/2023 10:15 PM - Business
International carbon credits to be available next month: TCX
11/29/2023 09:54 PM - Politics
Taiwan's presidential hopefuls pledge to boost minimum monthly wage
11/29/2023 09:49 PM