Central bank to keep interest rates frozen for 12th consecutive quarter
Taiwan News
Date: 2019/07/19
By: Taiwan News, Staff Writer
TAIPEI (Taiwan News) — Taiwan’s central bank is not expected to lower interest rates despite
Governor of the Central Bank Yang Chin-long (楊金龍)
Governor of the Central Bank Yang Chin-long (楊金龍) (By Central News Agency)
In light of their recent economic downturn and ongoing trade war with Japan, the South Korean central bank has decided to lower interest rates from 1.75 to 1.5 percent, reports the Liberty Times. Korea’s position as Taiwan’s main export rival has led observers to speculate as to whether Taiwan would follow suit after 12 quarters without any change in rates.
The LTN reports that the central bank of Taiwan is unlikely to adjust key interest rates and will maintain the status quo set in July 2016. The bank chose to keep the discount rate at 1.375 percent at a quarterly policy meeting in June, as it expected stable inflation in the near future.
At a press conference last month, the governor of the central bank, Yang Chin-long (楊金龍) was asked if Taiwan would follow the U.S. if it were to lower interest rates. Yang responded by saying that “Taiwan is in a different situation to the U.S. (and) has to consider different factors and won’t necessarily follow suit.” [FULL STORY]
