Reported 7 months ago
During the meeting of the Board of Directors of the Central Bank yesterday, Governor Yang Chin-long announced that the policy interest rate would remain unchanged but the reserve requirement ratio would be increased by 0.25 percentage points starting July 1. Addressing concerns about the New Housing Policy potentially aiding in rising property prices, Governor Yang acknowledged the increase in transfer of buildings as well as cautioned about the consequences for borrowers who may not be able to repay their loans. The Finance Minister and Vice Chairman of the Central Bank also discussed coordinating measures, while Central Bank investigations focused on potential loopholes with properties owned under parents' names but borrowed by their children. Reasons for not adjusting luxury housing thresholds were outlined, emphasizing the focus on investment properties for multiple homeowners. Concerns about credit expansion among first-time buyers due to the policy were also mentioned, with calls for better financial management. Yang highlighted the importance of mindful long-term financial planning for young borrowers amidst potential interest rate hikes and the end of grace periods, to avoid banks suffering as a result.
Source: YAHOO