HAND OVER:Central bank Governor Perng Fai-nan said that the government could spur growth by using excessive savings to fund public works, such as urban renewal
Date: Sep 30, 2016
By: Crystal Hsu / Staff reporter
The central bank yesterday kept its policy rates unchanged, saying the economy has recovered mild growth since last quarter and the pace is expected to accelerate next quarter and beyond.
The move followed four interest rate cuts of 12.5 basis points in the past 12 months, when the nation’s export-focused economy took a hit from a slowdown with major trading partners, including China.
“The nation’s interest rates are low enough and loose monetary policy is increasingly reaching its limit,” central bank Governor Perng Fai-nan (彭淮南) told a news conference after the bank’s quarterly board meeting.
This means the rediscount rate will hold steady at 1.375 percent, the collateralized loan rate at 1.75 percent and the unsecured loan rate at 3.625 percent. [FULL STORY]