No Change in Taiwan’s Benchmark Interest Rate
June 21, 2012
Following a quarterly review, monetary officials in Taiwan left their key policy interest rate at 1.87%. This was the fourth rate review that resulted in no interest rate change. From June 2010 through June 2011, five straight hikes of 12.5 basis points were implemented, lifting to benchmark by a total of 62.5 basis points from a base of 1.25%. Prior to the easing cycle associated with the Great Recession, the rate was cut from a pre-September 2008 peak of 3.625% to its cyclical low by February 2009.
A new statement from officials cites increased global risks, negative export growth, and reduced domestic inflationary pressure for the continuing pause in raising interest rates.
Copyright 2012, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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