Central bank leaves interest rates unchanged for 3rd straight quarter

Taipei, Dec. 19 (CNA) The Central Bank of the Republic of China (Taiwan) on Thursday decided to leave its key interest rates unchanged after wrapping up a quarterly policymaking meeting, marking the third consecutive quarter monetary policy has remained unchanged.

The decision came after a unanimous vote by the central bank's board members, the bank said.

After the decision, the discount rate remains at 2 percent -- which is still the highest in 15 years -- with rate on accommodations with collateral at 2.375 percent and the rate on accommodations without collateral at 4.250 percent.

The move to leave interest rates unchanged despite a rate cut by the U.S. Federal Reserve overnight had been widely anticipated by the market as local service costs such as rents, medical care and dining-out expenses remain relatively high.

Market analysts said the local central bank preferred to leave its monetary policy unchanged for now as it needs more time to observe the impact resulting from the return of Donald Trump to the White House, as he has threatened to raise tariffs, which could push up product prices and boost inflationary pressure.

Overnight, the Fed continued its policymaking meeting by cutting rates by 25 basis points but it's dot-plot, which indicates individual members' expectations for rates, showed the American central bank will have only two rate cuts next year, less than the four cuts it had previously signaled.

At Thursday's meeting, the central bank did not come up with a new round of selective credit controls on the local home market, saying only it will continue to monitor the effects of the seventh round of credit controls it imposed in September.