TAIPEI (TVBS News) — Taiwan's Central Bank (CBC, 中央銀行) decided on Thursday (Dec. 18) to maintain key interest rates during its fourth-quarter board meeting. The discount rate, rate on refinancing of secured loans, and the rate on temporary accommodations remain at 2%, 2.375%, and 4.25%, respectively. The CBC aims to support steady economic growth amid moderate inflation projections below 2% next year.
The central bank pointed out that beginning next year, the CBC will shift its real estate loan policy by allowing banks to implement internal quantitative controls while requiring monthly reports. This change follows a decline in real estate lending concentration from a peak of 37.61% in June last year to 36.7% by November's end, according to Central Bank statistics. A majority of banks reached their aggregate real estate lending volume goals.
The CBC stated the bank's approach to interest rates underwent a shift in March 2020 when rates dropped to 1.125% in response to the pandemic. Under Governor Yang Chin-long (楊金龍), the bank raised rates for the first time in the first quarter of 2022, eventually increasing the discount rate to 1.875% over five consecutive quarters. Since the second quarter of last year, the bank has refrained from adjusting rates for seven straight quarters. ◼
