Taiwan c.bank cuts rates for second time in 2015 to boost economic growth

      

Taiwan's central bank cut its policy rate for the second time this year on Thursday, underscoring concern for the trade-dependent economy that entered recession in the third quarter. 

PHOTO: REUTERS

DEC 17, 20155:22 PM

[TAIPEI] Taiwan's central bank cut its policy rate for the second time this year on Thursday, underscoring concern for the trade-dependent economy that entered recession in the third quarter.

The central bank cut the rate to 1.625 per cent from 1.75 per cent. All but four of 17 economists polled by Reuters expected no change to the benchmark discount rate.

The discount rate, the rate at which banks can borrow from the central bank on a short-term basis, is largely symbolic.

At its last quarterly meeting in September, the central bank cut the policy rate by 12.5 basis points, its first change since mid-2011. Later, government figures showed Taiwan fell into recession in the third quarter.

REUTERS