Central bank leaves interest rates unchanged for 7th straight quarter

The central bank concluded a quarterly policy-making meeting on Thursday, with its board members unanimously agreeing to leave key interest rates unchanged.

It was the seventh consecutive quarter the central bank has left interest rates unchanged.

At the conclusion of its latest quarterly policy-making meeting, the central bank's discount rate remains at 1.125 percent, the lowest in history.

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.

The move to leave interest rates unchanged was expected, in particular after the U.S. Federal Reserve decided not to change interest rates at a policy-making meeting that ended overnight.

During a hearing at the Legislative Yuan in late November, central bank governor Yang Chin-long (???) said raising interest rates before other economies would result in a surge in incoming funds and create chaos in Taiwan's foreign exchange market.

Yang said overseas funds could also find their way into Taiwan's overheated real estate market and further push up home prices.

However, the Fed has hinted it will raise interest rates three times next year. Analysts said the local central bank might choose to start a rate hike cycle after the Fed makes its move, but the pace will likely be slower.

Source: Focus Taiwan News Channel