TAIPEI (Taiwan News) — Taiwan’s Central Bank has announced it will increase interest rates by 0.25 percentage points beginning on Friday (March 18).

The decision was made after the bank held a quarterly board of directors meeting. Additionally, the bank’s discount rate will rise to 1.375 percent from 1.125 percent, CNA reported.

In December, Central Bank Governor Yang Chin-long (楊金龍) said that raising interest rates would lead to an increase in the cost of house purchases, but the Central Bank intends to curb expected inflation. Stabilizing prices has a positive effect on the country's medium and long-term economic development, he said.

Yang emphasized that this time, the Central Bank did not take measures to control the housing market, aside from implementing four waves of selective credit controls since the end of 2020. Currently, it has been observed that data measuring financial stability-related data such as non-performing construction loan rates and credit concentration are well controlled, the governor said.