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Taiwan’s central bank decides to raise interest rates by half a point
Central bank: Raising rates helps stabilize prices and promote steady economic development
Central Bank Governor Yang Chin-lung: Bitcoin is like a roller coaster
Taiwan’s central bank decides to raise interest rates by half a point
Taiwan’s Central Bank held a joint meeting of the Board of Directors and Supervisors on the 21st and decided to raise interest rates by half a point to combat inflation. This is the first rate hike since the second quarter of 2023 and will be implemented starting from tomorrow, the 22nd.
The central bank also raised its economic growth forecast for this year to 3.22%, and CPI was adjusted to 2.16%.
The rediscount rate, secured loan and discount rate, and short-term accommodation rate have been raised by 0.125% each, as shown below:
Rediscount rate: 1.875% → 2%
Short-term accommodation rate: 4.125% → 4.25%
Secured loan and discount rate: 2.25% → 2.375%
Central bank: Raising rates helps stabilize prices and promote steady economic development
The central bank pointed out that considering the global economic situation, it was originally expected that domestic inflation would decrease quarter by quarter. However, taking into account the higher price increase since 2021 and the proposed electricity price increase in April this year, it is feared that it will create inflation expectations.
Therefore, the board of directors believes that raising interest rates will help promote price stability and assist in overall economic development.
The central bank emphasized that it will continue to monitor electricity price adjustments, domestic inflation developments, and also pay close attention to potential impacts from China’s economic downturn and geopolitical risks.
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Central Bank Governor Yang Chin-lung: Bitcoin is like a roller coaster
In the presentation of “Issues of Concern to the Outside World,” the central bank also listed the progress of Bitcoin and spot ETFs. Yang Chin-lung commented on this:
Bitcoin is like a roller coaster, and we remind investors to fasten their seat belts for safety.
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