Taipei, Dec. 14 (CNA) The Central Bank of the Republic of China (Taiwan) said on Thursday that it has decided to leave its key interest rates unchanged after concluding a quarterly policy-making meeting that day.
The move by the local central bank had been widely anticipated by the market, in particular after the U.S. Federal Reserve left interest rates the same overnight following its latest policymaking meeting and struck a dovish tone, hinting that it plans to cut rates at least three times by 75 basis points next year.
It was the third consecutive quarter the local central bank has maintained its monetary policy with the discount rate staying at 1.875 percent, though that is still the highest level in eight years.
In addition, the rate on accommodations with collateral stays at 2.250 percent, and the rate on accommodations without collateral is also unchanged at 4.125 percent, according to the central bank.
The local central bank said the decision to keep interest rates steady was unanimously supported by the bank's directors, after inflation showed signs of moderating and it looks possible the consumer price index (CPI) could fall below the 2 percent alert level set by the bank in 2024.
In the first 11 months of this year, Taiwan's CPI grew 2.48 percent from a year earlier with core CPI, which excludes fruit, vegetables and energy, up 2.60 percent year-on-year, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).
The central bank said at a time when the global economy has been hit by headwinds and faces a downturn, which is likely to affect Taiwan's fundamentals, the decision to maintain monetary policy is expected to help to stabilize the local financial market.
Since March 2022, Taiwan's central bank has raised its rates by 75 basis points to combat rising inflation.
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