Reported 7 months ago
On June 13, 2024, Taiwan's Central Bank decided to maintain the discount rate at 2% during its second quarter board meeting and surprised the market by raising the reserve requirement ratio by one percentage point without prior warning, starting from July 1. This move aims to withdraw around 120 billion NT dollars from the market. Despite not adjusting interest rates, the Central Bank continues its tightening direction in monetary policy by raising the reserve requirement ratio for the third consecutive quarter, totaling a three-percentage-point increase. The Governor emphasized a further tightening stance, focusing on quantity rather than price management and aiming to control the housing market specifically. The adjustment is expected to tighten liquidity, impacting banks' lending capacity and leading to an increase in market interest rates.
Source: YAHOO