Taiwan’s Central Bank decided to cut key interest rates by 0.125 percentage points after concluding the second quarterly policymaking meeting this year on Thursday.
Bank governor Perng Fai-nan said that the catalyst for the rate cut is the UK’s vote to leave the European Union, which has led to volatility in global financial markets. Subsequent uncertainty will affect the monetary policies of key countries and the prices of raw materials worldwide, affecting the global economic outlook and leading to an indirect impact on Taiwan.
The move marked the fourth consecutive quarter for the Central Bank to lower interest rates. After the latest rate cut, the discount rate will fall to 1.375 percent. The rate of accommodations with collateral will drop to 1.750 percent, and the rate of accommodations without collateral will decline to 3.625 percent. These measures are set to take effect on Friday.