TAIPEI (Taiwan News) — Taiwan’s central bank announced an interest rate increase on Thursday (March 21), defying economists’ expectations.The central bank announced the decision to increase the interest rate to 2% after its quarterly policy making meeting. CNA reported that central bank governor Yang Chin-long (楊金龍) said the decision may be “a little surprising” but it was the right thing to do.In a press release, the bank said the global economic outlook is marked by uncertainty. This includes the U.S., European, and Japanese central banks’ monetary policies, movements in the Chinese economy, supply chain issues, geopolitical risks, and climate change.The bank said all of these issues could impact global inflationary trends, which Yang said was the main reason for the interest rate hike. Last week Yang told a meeting of legislators that inflation was likely to top 2% in 2024.Overnight the U.S central bank decided to keep its interest rate unchanged. Yang said the market may question why Taiwan is not following the U.S., and explained that Taiwan’s approach has been more gradual and moderate than some foreign banks.Yang said that as long as inflation remains high, so too will interest rates. “There is no doubt about this,” he said.Public relations manager at Great Home Realty Lai Chih-chang (賴志昶) explained the impact the interest rate hike would have on mortgage holders. He told CNA that for those with a mortgage of NT$10 million (about US$314,000) over a 30 year period, repayments will increase by NT$631 per month or NT$7,572 per year.Sinyi Real Estate research office head Tseng Ching-te (曾敬德) said he believes the interest rate hike is not aimed at the housing market. He said the main reason for the hike is that planned electricity price increases may have pushed up inflation expectations.Tseng said that in the short term, house prices may decline slightly as a result of the increase. However, he said in the long term, the housing market is not likely to see much change.Mar. 21, 2024 20:19Jono ThomsonTaiwan News, Staff Writer (ICE TAIPEI)

Fonte notizia: Organi di Stampa - Taiwan News