Friday, December 12, 2008

The Biggest Cut Interest Rate of Taiwan Central Bank

On Thursday Taiwan China bank had made an announcement regarding their cutting interest rates by 75 points and that is the biggest interest cut for 26 years.

The Bank stated that the discount rate will be lowered from 2.75 percent to 2.00 percent beginning Friday.

Another thing is the unsecured loans rate will drop to 4.25 percent from 5.00 percent, while the secured loans rate will be lowered to 2.375 percent from 3.125 percent.

Analysts had expected a cut of 50 basis points to spur the economy. And the factors driving such a big cut were eased inflationary pressure and the continued economic downturn, as what they said.

The central bank made another statement that "The global economies are in recession and the demand from abroad is weakening, therefore leading the export sector, the engine of the economy, to register negative growth for three months in a row,”

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