Taiwan's central bank decided Thursday to leave its key interest rates unchanged for the sixth consecutive quarter, at the conclusion of its quarterly policymaking meeting.
The bank's decision to maintain its monetary policy was widely anticipated by the market, as private consumption has been hurt by a recent domestic outbreak of COVID-19.
At the conclusion of its latest quarterly policy-making meeting, the central bank retained the discount rate at 1.125 percent, the lowest in Taiwan's history.
Meanwhile, the rate on accommodations with collateral remains unchanged at 1.50 percent, while the rate on accommodations without collateral stays at 3.375 percent, the central bank said.
Market analysts said that because consumer prices in Taiwan have remained stable, the central bank is in no hurry to raise interest rates, although its counterpart in neighboring South Korea has kicked off a rate hike cycle.
In addition, a hike in interest rates would result in appreciation of the Taiwan dollar, which would blunt the competitiveness of many export-oriented Taiwanese manufacturers, analysts said.
Source: Focus Taiwan News Channel