Reported 7 months ago
The US Federal Reserve announced no change in interest rates yet again, and following suit, the Taiwan Central Bank maintained its rates in the 2024 Q2 board meeting with 'no surprise,' as expected by the market. Despite no rate hike, the central bank unexpectedly raised the TWD reserve requirement ratio by 0.25 percentage points. Taking into account mild economic growth and easing inflation, the board agreed unanimously to keep policy rates unchanged and adjust selective credit control measures while increasing the TWD reserve requirement rate. Governor Yang Chin-long joked that there really was 'no surprise' this time and emphasized the need to manage monetary credit quantity effectively by raising the reserve ratio to help ease credit flow into the real estate market. Yang noted the importance of considering global economic conditions and the stance of major central banks worldwide, indicating that Taiwan's situation differs from the US, and the decision about future rate adjustments will depend on domestic inflation trends after the previous modest hike in Q1.
Source: YAHOO