TAIPEI (Taiwan News) – The Central Bank on Thursday left interest rates unchanged for the third time running, while issuing no new measures against housing speculation.
After its final board meeting for the year, the bank also predicted inflation would fall below 2% in 2025. The benchmark discount rate stayed at the 16-year high of 2%, Radio Taiwan International reported. The secured loan rate remained at 2.375%, and the unsecured loan rate at 4.25%.
The bank said that looking at domestic economic developments, the stabilization and expected drop in the consumer price index (CPI) below 2% motivated the decision to leave interest rates unchanged. Domestic demand was helping to keep the Taiwan economy stable, according to the Central Bank.
After announcing a seventh round of measures in September to counter real estate speculation, some sources had expected an eighth package from the bank. However, the bank said the latest data showed a decline in the number of real estate transactions, while public expectation of rising prices had cooled.
The Central Bank said it would keep a close watch over developments in the housing market, and adapt its policies to support financial stability and safeguard the health of the banking sector.