The Central Bank has announced that it is cutting key interest rates by another 0.125 percentage points. The bank reached the decision at a quarterly policymaking meeting held on Thursday.
It will be the third consecutive quarter in which the bank has lowered interest rates. The bank made the decision because the global economy is not growing as expected. In addition, Taiwan’s exports are continuing to see negative growth.
After the latest rate cuts, the discount rate will fall to 1.5 percent. The rate of accommodations with collateral will be adjusted to 1.875 percent, and the rate of accommodations without collateral to 3.750 percent.
On Thursday, Central Bank Governor Perng Fai-nan said that cutting interest rates is designed to encourage investment and lessen the gap between Taiwan’s interest rates and those of other countries. Perng said there is little chance of Taiwan adopting a 0% interest rate or negative interest rate during the remainder of his time as Central Bank Governor.