Taiwan Central bank leaves interest rates unchanged

Taipei, After concluding a quarterly policymaking meeting on Thursday, Taiwan’s central bank decided to leave its key interest rates unchanged, a move widely anticipated by the market.

Following the decision, the discount rate remains at 1.125 percent, the lowest in the country’s history, according to the bank.

Meanwhile, the rate on accommodations with collateral is unchanged at 1.50 percent, while the rate on accommodations without collateral stays at 3.375 percent, the central bank said.

This was the fourth consecutive quarter the central bank has maintained its monetary policy, at a time when Taiwan has seen little inflationary pressure with local consumer prices stable, analysts said.

Moreover, as the world’s major central banks continue to keep their interest rates low by pumping funds into the market to counter the economic impact of the COVID-19 pandemic, there is no urgent need for the local central bank to adjust its monetary policy, according to analysts.

Just ahead of the central bank’s decision, the U.S. Federal Reserve wrapped up a two-day policymaking meeting overnight and left its benchmark interest rates intact. The Fed also said it expects interest rates to remain near to zero for the next two years and upgraded its national economic outlook.

Source: Focus Taiwan News Channel