PRECURSOR:Expectations of further easing rose this week after the central bank relaxed funding conditions, which it also did prior to a rate reduction in September
Date: Feb 20, 2016
The central bank is to cut its policy rate to a record low this year as prospects of an economic recovery appear bleak amid a slowdown in trade, according to ING Groep NV and Fubon Financial Holding Co (富邦金控).
ING predicts the monetary authority will double the size of reductions in the benchmark discount rate to 25 basis points, taking the rate to less than the unprecedented 1.25 percent in 2009 during the global financial crisis.
Fubon senior economist Rick Lo (羅瑋) estimated the rate would drop to 1.125 percent by year’s end after the nation lowered its economic growth forecast for the year this week. [FULL STORY]