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Central bank cuts interest rates

Central bank cuts interest rates

Taipei, Sept. 24 (CNA) The Central Bank of the Republic of China said Thursday that it has decided to cut its key interest rates by 0.125 percentage points after concluding a quarterly policymaking meeting. It is the first time the central bank has cut interest rates after leaving them unchanged for the past 16 quarters. The interest rate cut has dragged down the discount rate to 1.750 percent, the rate of accommodations with collateral to 2.125 percent, and the rate of accommodations without collateral to 4.0 percent. Market analysts said that the latest decision by the central bank is aimed at boosting the local economy, which has been hurt by weakening global demand. In August, the government cut its forecast for Taiwan's gross domestic product growth for 2015 to 1.56 percent from an earlier estimate of a 3.28 percent rise, citing weaker-than-expected exports. Many economists have raised concerns that Taiwan could struggle to maintain a 1 percent increase in GDP for this year if exports continue to decline. (By Tsai Yi-chu and Frances Huang)


Updated : 2021-05-09 17:53 GMT+08:00