Taiwanese Interest Rate Cut Exceed Expectations

March 19, 2020

The Central Bank of the Republic of China (Taiwan) reduced its discount rate by a greater-than-anticipated 25 basis points to 1.125%. This was the rates first change since a cut of 12.5% in June 2016. Officials also established a special loan facility for small and medium-sized enterprises. The coronavirus will be a big growth depressant but not the only one. Officials also mentioned falling global inflation, geopolitical conflicts, and the uncertain resolution of trade talks. GDP in Taiwan is expected to slow to 1.9% this year, and inflation is currently under 1%.

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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